Accor SA (AC) Earnings Call Transcript & Summary

Good morning. Thanks a lot for many of you who came here today for what should be -- could be important day for sure. Interesting, depends on you. I want to start with thanking 3 different persons, and they are here on the second row. And it's very important, I think, for many of you to put a face on Iris Knobloch. Iris Knobloch, she is the Vice Chairwoman of the Board of Directors of Accor. She is a lead independent director. She is a lawyer by background, both in America, in Munich and in England. She's been in Warner studio for a long time as CEO for Europe. She is a newly elected President of the Cannes Festival, and she's been with us for a long time, really looking after both of us, looking after each of you, and thank you very much, Iris for coming here today. Then you have Isabelle Simon. Isabel Simon, lawyer, banker, Goldman Sachs, former CEO of SBM, she knows hospitality. She's today the General Corporate Secretary, General Counsel, ESG at Thales, large defense company, and she is chairing the Audit Committee, and she is here with us. And we have Hélène Auriol Potier, who is former Microsoft executives, knows inside our digital being living in the Anglo-Saxon world on mini Board, and she is chairing today the new ethic compliance committee for Accor, the Board Directors. So please, since you put a face on 3 of them, take advantage through the lunch time. If you do stay through the lunch time, which I don't know, I hope you do a bit. Please go and reach out for the 3 of you. It's going to be a combination of many outsiders here, be it a financial analyst, commercial bankers, investment bankers and many Accor executives. And I think the room is going to be filled up during the next 30 or 45 minutes with people who didn't dare to come down. But now they know they have an empty seat that they could really attend. In the first row of this auditorium, you have the top key executives of this company. I won't introduce them one by one. There is a referral to the organization chart in one of my slide presentation. Again, I'm asking each of you being my peers go and reach out to meet as many times as you want with you as analysts and investors. Knowing me, you won't be surprised. I won't show you the slides. You have them in the deck, and I decided last night. Not to go one by one. One is because you know the content inside out. And two is because I want to go back a bit with you, kind of actually a bit more personal, maybe more authentic. And I'll probably go on Slide #11 which I want to pause a minute with you and for you and I to look at the 4 questions we ask ourselves only 1.5 years ago. What I wanted to start with is for you to hopefully agree with me that the -- by far, the richest asset of this company happens to be not the brands, not the network, not the leadership, not the balance sheet. That happens to be the people of this organization. It makes us extremely different in the world of hospitality, probably unique in terms of reach globally and culturally. Part of the deck, you'll see that there's something which no one else probably has achieved over the last 12 months in many industries. It happens to be the numbers of underprivileged people who got access to work over the last 12 months. There is a number in your deck who talks about 123,000 new hired people working for Accor the last 12 months. But what's striking is not the number. It's for you to realize that almost 60% of those 123,000 never had a job before, never went better than high school diploma, never had the chance, the privilege to go to university and they knocked on our door, and they ask whether we can hire them, embark them, train them, which turned out that in Accor organization, you know we have 500 hotels. But understand that 1/3 of those Hotel General Manager don't have any university diploma either. They made it through the ranks over the last 20 years. And that is something very important for Accor. When I was in Riyadh 1.5 years ago, next to me was 2 of my peers, CEO of Travelodge, hospitality chain in America. And one of the officials from Saudi Arabia asked us what do we do for living. Of course, we didn't know one another. And my peers responded, "I'm a brand hotel distributor." And I was struck by it and then he turned to me, the Saudi official and he said, what do you do? And I said, "I'm a hotel operator." And that sentence alone tells you that we happen -- I'm not saying we are unique. I'm just saying we're different in terms of where do we embark, what are the social purpose of this company, what are the things that we need to do in life to embark people and to give a job, what do we do for diversity, a handicap, what do we do for the planet. It's just a different model. There's another thing which makes us a bit different is in times of gloom and doom, people tend to forget about it. I certainly don't. We went all of us through COVID, 2 years of hell. And that's those 2 years were not missed. We're not really 2 years of loss. But at the time, where we also demonstrated that through the solidarity and fund that we put together on your behalf called Heartist Fund, decided to be there, be present, be accessible and provide what people wanted the most is a paycheck even though the hotels were closed to get access to hospital and to get access to food. And just I want to thank each of you for being in the room. Thanks to you and what you allowed us to do. Thanks to the Board of Directors who embarked upon it, decided to give EUR 36 million, 410,000 employees of Accor. Mostly, you won't be surprised, 80% in Southeast Asia and South America precisely in some countries in which we had no access to subsidies. So that's the human capital part. Then I just want to go quickly on the last 10 years. There's one thing which is critical and probably evident, but it's even better than many of us think. I keep saying for the last 10 years that we are in a blessed industry. Blessed in terms of size, it is the third largest industry on the planet, $9 trillion. It is the largest industry in terms of employers, 10% of the worldwide workforce works for travel and tourism industry. It's being a growing industry, 4% to 5% per annum the last 40 years. Of course, there's a blip of COVID, but put that aside. But what people tell us that, that industry not only has been growing 4% to 5% the last 40 years, but likely will grow 9% to 14% in the next 10 years. So pace of growth, 2 to 3x better than what we enjoyed the last 4 decades. Why? Well, it's all a question of demography. That's what it is. Seventy years ago, the planet was comprised of 2.5 billion people. Today is 7.6 billion people. It's all about the emergence of middle class population. It's all a matter of those who have the wherewithal to travel, both domestically and internationally. For the last 10 years, the emerging middle class population has increased by 1 billion people, the next 10 years, it will increase by 1.5 billion people. Where? China, Asia and of course, India. India alone is 500 million new people in the last 5 years from 300 million to 800 million. Guess what? We've been talking quite a bit about India , about China, 150 million people traveling which is the same as Americans in 2019. You had virtually maybe less than 10 million Indian traveling. I guarantee you in the next 2 years, 3 years, 4 years, 5 years, you will have 50 million, 70 million, 100 million new Indians who never traveled internationally who will travel the next 2 to 5 years. Where would they go? Five-hour flight. They're going to go to Southeast Asia. They're going to go to the Middle East. So this is why Accor had the best footprint in those 2 regions. But then you have scale, you have growth, you have size, and you have leadership. But then we ask ourselves a question 10 years ago. How should we play? What should we be focusing on? What are the risks? Who could be the disruptors? And then decided that Accor was probably too French, too European, too mid-scale egocentric, i.e. in a very good segment, but the segment growing the least for the previous 20 years, plus 2% or 3% RevPAR where the premium luxury was going twice faster. And we were missing high-growth market in Asia, in Middle East and other places. So decided to shift a bit, and we were too capital-intensive, and I won't go back with you on the get free, get broad, get light. You know all this. But they started to preserve, enhance, do better with what has been built the last 40 years, which is the economy scale in Europe. But go and try our luck on trying to get better segments, greater brands by acquisitions, by penetration and upscale the talent by being more internationally cultured as opposed to be French-cultured. And that took us 8 years to go one by one to -- and you've seen the increase of brands. You've seen the increase of Europe representing 75%. Ten years ago, today, it's 21%. Today, it's actually -- sorry, it's -- today is 40%. So by doing all this, then we had COVID and then we had to pause after doing 6 years of different chapters, different transformation. And through COVID, we said this is the first time, Jean-Jacques, myself, a subset of the executives here. We had time to pause, to think, to reflect on cost, on people, on size, on margins, on returns, on many things. We were not traveling, we were there to think and hopefully to act. And you've seen 2.5 years ago that we've done, we set on trying to be a bit more fit in terms of less people, less different offices and trying to save cost. But then that's why I want to go on Page 11. Here it is. February 2022, after doing all the things I've talked to you about. We had the last wave of COVID. That was, again, another difficult quarter in tourism. I sat down with Jean-Jacques and again, a dozen people. And I said I think we've done great for the employees of this company. And I've discussed with you what we've done through COVID and all the people who we have been hiring. I think we've done good for hotel owners. They've been having good returns with Accor over the last 40 years, which is why they've been so loyal. I think we've been pretty good with the brands by acquiring so many brands. But I had 4 questions, which was related to -- you won't be surprised, stock price. The stock price in February 2022 was exactly the same as a stock price of August 2013, when I joined Accor, EUR 27. And I said to myself, it's odd. I think we've done the right things. I think we've made the major step. I think the group is so much stronger, better. Bear in mind, by doing all this, there was something in our mind, which was super important to preserve at any cost, financial independence. Those from lenders and from equity market, preserve your balance sheet. And thank God, we did when we went through COVID. But those were the 4 questions that was in front of our eyes at the end of February. The first is kind of evident. With so many brands, so many segments, should we continue with the same geographic-led organization? And I'm just giving you an example, and I was talking with the previous CEO, put Northern Europe, there was 1 CEO for Northern Europe. He's actually here in the room, Duncan. Running 31 countries from Ireland to Vladivostock, going through Germany, Hungaria, Kazakhstan, you go on, and I name it. And Duncan, through 31 countries, 24-hour day was spending 1.5 hours meetings with different hotel owners, but it was the same 90 minutes on ibis owner, on a Novotel owner, on the Sofitel owner and on Raffles owner, the same depth, the same importance because you have to treat your different owners. But the owners were very different. One owner of Raffles were spending $500 million at risk on 1 property. The ibis franchisee was barely spending maybe EUR 30 million or EUR 40 million. And we were giving the guide the same 90 minutes, and we probably reflected that, I guess, we probably should have prepared 6 hours before we meet the Raffles owners and maybe 20 minutes before you meet with ibis. He was just disproportionate that month of time, not the right expertise, not at the right moment and not the right amount of time. So on that one, it was fairly easy. We cannot continue to be so generalist of the 46 brand in 31 Northern Europe countries. Then we ask another question. For the management team, for the employees at the hotel, do they have a sense of ownership? Do they have that sense of purpose, that ability to act? Can they make decision? Do they have the autonomy? The answer was probably no, not enough. Then you go for the clients, the owners. Do they really get the return they expect? Or do they really get the expertise and the attention they expect being in different segments? The answer was no. And then the last question is where I started. Why is it that the stock price in February 2022 is exactly the same as 2013? If I knew the answer, I think I would have done something better. Of course, I was searching for this answer for a long, long time. So it has a lot to do with what we're doing today. Should we give you -- and I think we owe you better clarity on the business model, better predictability on where we're going, which is why with confidence, we gave you the numbers between 2023 to '27. And do we give you the proportionate number of returns that you expect for taking the risk? So all of those 4 questions had 1 answer. It's not the only answer, but at least 1 answer. If you can go to Page 13. It's not that one. Which is we are lacking focus. And we're lacking focus on 3 dimensions. Number one, in terms of skills, teams and brands. Some brands should have better attention, should be incarnated, somebody should be behind it and driving the force. Two, that company was too complex to run. And if it's too complex to run, it's too complex to underwrite. So make it simpler for you and make it simpler for those being outsiders. And three, continue to innovate, continue to expand, the search for profitable growth, which is how we went through different segments, including lifestyle. So it led to 2 different pillars, 2 different organizations, autonomous, not independent. I'll go back to this through the Q&A with you, if you allow me to. One, let's preserve what makes that group so strong. The geographic-led organization for premium, mid-scale and economy. And you have the brand here. But there's 1 objective and it's a very simple draconian objective. Let's make sure that this division is super predictable. Let's make sure it is very resilient in bad days that you can still perform. And you've seen many of you the numbers for ours, again, struck by Wyndham and Choice. If you really look at the numbers for 2020, 2021, 2022 for COVID for Wyndham and Choice is unbelievable how strong they were in the worst ever storm. And then let's go for the highest cash generation and operational leverage and cash transformation. Those are simple words but that's what Jean-Jacques is going to be talking to you about as part of his new role and function. But then you have another leg, which is vastly different for reasons I've explained to you in 2 minutes. Make sure it's not market-led. It should be person, branded, incarnated and which is why we decided to have the 4 pillars. And again, you're going to have the chance to hear 3 of those people on stage with you. But that's a different mission, that is very much linked to experience, to brand promise, brand content, brand fulfillment has a lot to do with a higher growth, but a higher risk and has to do with a better value for per dollars per fee per room and you'll see that right now. You are searching for those numbers for a long, long time, and I don't know what took us so long to give you those numbers. You know for the group, you knew it was 1,400 feet per room on average, which has divided the management and franchise fee divided by 800,000 room. That's not too difficult. What you probably didn't know, you are expecting 2.5 to 3x better for Lux Lifestyle. It's actually 3.5x better. It's 1:1.1 and 3.6:3.9 for Lux Lifestyle division, then decided to give you pace of growth, 2023, 2027. And here, it is multiply of 2 to 2.2x. It is a solid 4% to 7% revenue growth, which is exactly the same as the last 40 years, I've talked to you about. So it's not a bad business at all. It's a resilient, predictable, not a super growth, but super cash-generative. It's like a bond. But look at the pace of growth for Lux Lifestyle. Of course, we're starting with a lower network but it's twice, and it's 11% to 13%, which basically permits us to believe that we should be going to 6% to 10% sales and revenue growth. And then you have EBITDA, thank God, confirming to you that we do have operating leverage, the greater amount of room you open with the same amount of cost, you have a better transformation. But there, again, multiply of 3 between PME 5 to 9, 15 to 20 and 9 to 12 for the group. Confirming to you the cash conversion and for the first time, being confident on telling shareholders that we should be returning between the last -- next 4 years, $3 billion to you, and you probably saw that in the deck in the later pages. Almost half and half, half through ordinary dividend, half through shareholders' return in formal share buyback. You have here a list of 14 individuals. Those are operational in nature or a shared platform. I just want to pause a minute with you here. There is a lot of great people as strong as good as those on the list, who happens to be in room, but not on the slide and this should not be missed. I'm talking treasury, I'm talking finance. I'm talking legal. I'm talking talent and culture, indispensable for all of us to run. But we wanted to show you those who are going to be on stage and those you may be interacting with, if you want, on asking a lot of questions on what we're going to be presenting. We are going to have a subset at [indiscernible] actually, 7 of them, plus Jean-Jacques and myself that makes 9 in front of you during the day. You'll have 2 on the premium, mid-scale and you have 3 on Lux Lifestyle, and then we'll have benefit of hearing Alix Boulnois on digital and sustainability. The one thing which is interesting about that slide, which I reflected this morning early, 80% of those people were not there 10 years ago, 60% of those 14 people have changed job 4 months ago. And across the top 50, 72% of the top 50 executives of Accor have changed job 4 months ago, both in terms of tutorship, in terms of reporting, people they work with. So just I don't say it likely, Thibault is a vast, vast new chapter of this company, which already resulted in a sense of ownership, greater energy, greater accountability and greater pride. And you'll see that through the session today. So again, those of you going to be on stage, don't be petrified. It's going to be absolutely fine and probably fun, but you're going to be seeing those. And I just want to finish by welcoming Martine Gerow. Martine is the new Chief Financial Officer. She started yesterday morning. So I'm not going to put her on stage, but she's rather in front of me on the first row here, Martine. She knows quite a bit about tourism, hospitality, a bit like I said about Helene, she is super, super bilingual, multicultural being living in younger Saxon environment for a long, long time, and she's starting as a CFO on the 1st of July. So on the Q&A that we'll have in few hours, please, we still going to have that gentleman here to my right, fetching 2 roles, Pierre-Loup still responding on a lot of financial question, which leads me to one side comment is on your behalf, on my behalf, a very, very warm thank you, Jean-Jacques. It's -- I know you're taking a new role, but you're being a hell of a good CFO so thank you for being here. Probably the best I know actually.

I've been here for a long time.

And so different from me which is perfect. It was a good match. It's going to be a good match with Martine. Well, so thank you again for being there. Let's make this journey as interactive as we could. I'm still asking you to wait until the last part of the day. So we're going to try to be out of here by 5:30 at probably at the best -- not the best as of clearly undertaking. But please all the questions on different speeches, different thematic, keep it for the end. So I guess we don't lose time and momentum. Should I ask -- Alix going to come on stage. Alix has a new role, which is a much greater role than the one she had before. She was part of Patrick's team. She -- how should I say that without you -- Alix been coming from Amazon for 6 years based in Seattle, 3 years with Accor. Alix, you're super bright. You're super detailed. You understand customer demands, you understand product, you understand services. You understand revenue. You -- somebody very important for Accor, as many of you in the room, and we are super, super lucky to have you on Board remaining with a new role. So just -- you don't have to surprise, just be yourself.

Hi, everyone. So I'm really delighted to be here today and to share a bit more with you on what we're doing on distribution, digital and loyalty. So without transition, I'm lucky to be in charge of an organization called Digital and Business Factory. So you may have seen on the slide that Sebastien shared previously that we have a set of services are called shared platform so my team is part of this share platform servicing all the brands and the geographies of the group. More specifically, what do we do? We have 6 main activities, which are the one you see on this slide. The first one relates to e-commerce and customer engagement. So it's everything related to all.com, our brand website working closely with the brand division, our mobile app and all our e-commerce ecosystem and the engagement of our member base. The second activity relates to loyalty and partnership. So our program, ALL, which I will talk about a bit later in my presentation as well as the entire ecosystem of partners that are part of this program. The third one is our contact centers. We have 12 today globally, it's around 1,000 people answering the phone for our customers, both for reservation and for care. Fourth is distribution and hotel services. So everything that relates to the tools, the systems and the processes that our hotels uses every day to do bookings, to welcome the guests, to do payments and to connect more systems. And the 2 last one are the Digital Factory and the data team. So they both in charge of delivering the best digital experiences for our guests, for our hotel owners and hotel operation as well as collecting the data and empowering our business teams and hotels to use the data properly to personalize experiences for our guests. Again, as I mentioned, we're servicing both divisions. We act as a center of expertise for both Luxury Lifestyle as well as premium, mid-scale and economy, and we interact directly with our guests and our hotels to deliver this. Before I jump into -- some deep dives on distribution and loyalty, I wanted to go back a bit more on Digital Factory. So where the digital and business factory is new and was launched earlier this year, the Digital Factory itself is not as new. It was launched end of 2021 with the support of Sebastien and Jean-Jacques. And the reason why I'm emphasizing this is that because it was a fairly unique move in the industry when we launch this organization. It's an organization of around 800 digital and tech experts, both engineers, product managers, designers, data centers and so on, that we all put under the same roof to really accelerate the digital transformation that we started already a couple of years ago, including under the leadership of Maud. And also to bring the best practices around tech and digital from tech companies. As Sebastien mentioned, I spent most of my career with tech -- big tech guys in the U.S., and they have a unique way to work to manage their teams to deliver solutions and systems. And this is really what with my leadership team, we've been trying to enforce within this organization. What's also very unique is that a lot of other players have done it better at a much smaller scale. Here we took a bold move to do it at a much bigger scale. And what we are already observing is the benefit you see on the right, so more speed, faster time to market, more efficiency and eventually more business value, innovation and ability to bring the best talent in directly filling the flywheel of our model. So the digital and business factory will build on this and will continue this journey. So zooming now on distribution, and you'll see that some of the results of this organization are already paying off in the numbers. So we'll share a bit more with you on where we stand and most importantly, what we're going to deliver in the upcoming 12 months. So first of all, when we took distribution, what do we have in mind? Really, our goal is to maximize the RGI and the net RevPAR for our owners. How do we do that? It's a simple equation with 3 pillars that you see here on the slide. The first one is really being in front of the customer. We believe that we need to follow the guest where he books, were he shops. And so as we expand distribution channels, we have more chances to capture the demand. The second one is really around maximizing the revenue. So where we are facing the customer, we do want to close the sale. So it means driving conversion on our own channels and our partner channels as well as maximizing our pricing power, especially through revenue management and channel management strategies. And the third pillar is, obviously, we want to do it at the lowest cost possible for both our hotel owners as well as for Accor. So what it means for us and for our hotel owners, it means driving exponential growth in our direct channels, which are obviously more profitable for both sides as well as on these direct channels, try to acquire and retain our customer with traffic drivers that are less expensive. So that's what we call on traffic in our jargon, so mostly CRM, mobile app, SEO and so on. So this is the equation of our strategy around distribution. And I'm going to share some numbers with you to illustrate how we've been doing on that front. So the numbers you see here are 2023 numbers compared to 2019, so pre-COVID level. So first of all, in terms of expanding our distribution, which I mentioned is the first pillar of our strategy, we now have more than 140 channels. By channels, this includes our direct channels, our digital websites as well as our contact center as well as a network of partners, OTAs, UCS and so on, with whom we have contracted directly, agreed on commercial terms and enable some technology and connectivities. This is 27% more than what we had pre-COVID. So a significant push that we've done, especially focusing on locally relevant channels. We have been, for a long time, working with global partners, but what we know and what we're seeing is that there are more and more local partners in Southeast Asia, in China, in Latin America, who we need to partner with if we want to drive distribution. The second piece is around our direct channels. So as I mentioned, we really want to drive faster growth on those versus indirect channels. So versus pre-COVID and after the launch of ALL, we gained 300 basis points of revenue share from our direct channel. This is in the past 12 months, 4 points more growth than what we are observing with OTAs and if you put all the indirect channels in the mix, so not only OTAs, but also GDS and so on, it's actually plus 7 points. So we do see already the goodness of all the work we've done on ALL and our strategy around direct channels. The other important number is the satisfaction of our customers with these channels. So we are now across geography at a score that is above 80% of customers that are saying they are satisfied with the experience they have on our channels. Just to give you a sense, the industry average is around 70%. So we are scoring significantly higher. And I also put for you on this slide the scoring on the stores for the mobile app because I think this one is way more known. And so as you can see, both Android and iOS, which are the 2 main ones. We are scoring very high as well, 4.8 and 4.6 out of 5, respectively. Just to give you a sense, at the beginning of the launch of ALL, we were between 3 and 3.5. So we did a significant improvement as well here. And last is on traffic. So what I was mentioning around driving traffic that is if not free, at the lowest cost possible, so downloading the app, driving traffic through our CRM capabilities, through our natural referencing, through our loyalty as well because a loyal customer is someone that will come back more naturally towards your direct channel. Today, we are at more than 70% of our traffic driven by these levers in some brands and geographies, especially in luxury and lifestyle, we are reaching as high as 85%. So really growing in a good direction here. And overall for the group, it's 400 basis points higher than what we had prior COVID and prior to ALL. So again, driving some profitability of our distribution here as well. So what's next in terms of distribution? We have 6 main focus as it comes to distribution. The first one I mentioned it is we want to continue to expand our distribution with more locally relevant partners. I've put a few logo here of partners we've already launched. There are way more in the pipe. And every month, we are releasing some new partners so we will continue this journey, especially again, Southeast Asia, Latin America, where we see a lot of potential to onboard new players. The second one is revenue management capabilities at scale. This is an area where we've been, in all honesty, behind and where there is a lot of upside for our business. We're talking about a couple points of RevPAR incremental just by rolling out the right revenue management capabilities in our hotel. So this is a journey that we've already started that we will accelerate in the upcoming months. The third one is around non-room. We've been focusing a lot of distributing hotel rooms, but the reality is our hotels have a lot more to offer. Should it be spas, restaurants and sauna. So this is also a strong focus. We've launched in the past 12 months, a platform called Old Food that distribute restaurants. It's now live in Europe, in Southeast Asia, and it's going to continue deploying across the globe. We've launched another platform around Spar in Europe, and the same, we are deploying it across all our geographies and brands. We do see that as big enablers, again, to bring business to our hotel owners and as well as to really bring to life our strategy around augmented hospitality which is important for all our brands, but especially true in the luxury where we know customers are looking for a bigger experience than just a stay. At the bottom, you see 3 other focus, personalization, one way for us to win on our direct channel is really to personalize the experience we bring in to our guests. This is a journey we started already more than a year ago. We've built some very strong capabilities around data that enable us now to have much more dynamic pages, content should be on our website, when people call in our customer care, on our e-mails, every single touch point with the customer, and this is something that we will continue because it is driving incremental conversion. Brand website, if you go to most of our brand website, you'll see that most of them are outdated. It wasn't a strong focus by the past with the new organization that we have in place with luxury and lifestyle being brand-led, but also PME putting a lot of emphasis on relaunching, revamping the brand. We do feel strongly that our digital assets should reflect this brand-specific strategy. So we are working closely with the 2 divisions to relaunch our websites. We actually launched -- relaunched Novotel and Mövenpick beginning of the year. We have a Fairmont coming up, Sofitel coming up, Raffles coming up, Mercure, ibis. So you'll see more and more. And as it comes to premium, mid-scale and economy, the interesting part is that we have been able to industrialize the model, which will enable us to release more and more of this website at an accelerated pace. In this priority, also listed the app, as I mentioned, the app is super important in our strategy. Just to give you a sense, the app in our direct channel with 18% of our revenues prior to COVID, we are now at 27% so this is a big driver of the engagement that we have with customers, and we will continue focusing on this. And last but not least, contact center. This is a channel that we often don't mention, but it is significant especially for luxury and lifestyle. To give you a sense, Fairmont, which has been really doing a great job historically in North America with this channel. For North America, Fairmont is 12% coming from contact centers. So this is a success that we are planning to replicate for the other luxury brands. We opened actually a new center in Barcelona in December of last year, and we're already starting to onboard the new -- some more luxury brands. So that's for distribution. Talking about loyalty. So first of all, I wanted to tell you a bit more about ALL. Last time, I think there was a Capital Market Day. It was prior to ALL launching. So I wanted to give you a sense of where we stand on the program. And so you'll see here on this slide that the program has significantly grown and been enriched in the past months. So in the center, you have Accor benefits of the program, which were promises that we've done when we launch a program and that now are all brought to life, so the member rate, the upgrade, the rewards, the ability to burn points. The 2 parts on the left and on the right are a bit newer. So the partnership were announced, but now they are a reality. We have 108 partners as part of the ecosystem of the program. We're around 50-ish before COVID. So we did a significant job on boarding those and also making them available digitally speaking, otherwise, they are not a reality for customers. And as you can see, we also enlarge the spectrum of these partners. So we have, obviously, airlines that we have also mobility companies. We have co-branded cards. We have insurance. We have experiences partners, and this is something that we will also continue doing and one area actually where we are specifically proud is across rewards. So the ability for customers to win points, both at the partner and at Accor. We have 3 today with 3 major airlines. We will continue to do that. This is -- we are the only company, the hotel chain in the world to have 3. The part of the right, I don't think was announced previously. So it's a bit newer, but it's something we're also super proud and bullish, it's subscription products. So as we've been through our journey around loyalty, we realized that there were a segment of customers from which we could -- with whom we can generate more engagement by providing them some extra levels of loyalty. So this is why we build this paid membership program that are part of ALL but tackle some specific segments of geographies. So for instance, we launched last year, it's Gary team, a program called ALL PLUS China with specific benefits for the Chinese market. We launched one in Latin America with Thomas' team, ALL Signature. We have one historically in Southeast Asia, ALL PLUS, and we have a few also in Europe tackling frequent travelers. So why is loyalty so important to us? So what you see here on this slide are 2022 full year numbers. They're actually getting better as we continue recovering in terms of business. But at least here, you have a full year. So to read this slide very simply, our members on average stays 2x more than nonmembers. When they stay with us, they spend on average 10% more per night and they represent 87% of direct bookings. The numbers at the bottom are also very important because they enable us to really measure the true repeat and loyalty of our customers. So here, what you see is for a member, what is the probability that if he stays with us this year, he will stay with us a year after. So it's 3.2x higher for a member versus a nonmember. If this member have used his or her points, you multiply this by 2, so it's 3.2 times 2, so you can multiply each number. And if on top of that, he's been using one of our partners, you multiply it again by 2. So as you can see, we create real retention with this program and the more the customer discovers the program, the more they stay with us. So now coming to the numbers. Again, these are numbers for 2023 versus 2019 so pre-COVID and pre ALL. So while the COVID didn't help, if you recall, ALL, the program was launched in December 2019, then we had 1.5 year that was a bit complicated in terms of business but yet what we do see is with the business recovering, we see a very strong pickup and adoption of the program. First of all, the awareness, plus 33%. Just to give you a sense, it's higher than the previous loyalty program that we had, and it's almost at par with competitors program despite the fact that we've launched a couple of years later. Second number of members. We have now 89 members worldwide. This is plus 40% versus '19 levels. And we see the enrollment is still going very, very strong year-to-date versus the same period in '19, we are plus 107%. So not only about enrolling the members. We do want them to be active to discover the program and to repeat with us. So what we've put here on the slide is the growth of members earning and burning points with us. So plus 45% versus pre-COVID level. So again, a very strong activity level. Satisfaction, 7.9 out of 10. To give you a sense, in the industry, the 5 biggest guys at ours are on average around 7. And partnership and subscription. We measure them as cash-in for the group, times 4 and times 3, respectively, versus pre-COVID level. So again, we are very, very bullish and pumped by these results, and we believe that we can go even further with the list of topics that you see here on the slide. So these are some priority that we have with my team and with the regions and the brands and that are really big untapped opportunities that make us really bullish around the potential growth of the program. First is B2B, we've been a bit late in finding the right offering for our B2B partners and customers. This is something that we revamped with the B2B team this year with more incentives for our partners, status match for the guest, some specific CRM approach and that we are progressively rolling out. Enrollment, I mentioned enrollment was very strong, but the reality is that 70% is happening on our digital channel. So we know that the in-hotel enrollment is a big untapped opportunity so we are rolling out enrollments through WiFi, through self check-ins, through QR code and so on. Activation and brand capabilities. We want to continue driving the activity of our members through omni-channel activation, but also through the app, all the services we can offer through this app and encouraging our members to download it. And the 2 last one, partnership and subscription as mentioned that we've significantly expanded our partnership pie, but this is something that we will continue because we do see a lot of interest from customers. Subscription program will, first of all, properly deploy and grow the one that we've launched, and we are also exploring some additional ones to be launched to tackle certain segments. And last one is luxury as part of the new organization. We are working closely with the luxury and lifestyle organization to really develop some unique features for these brands as well as some unique capabilities for them to tackle and personalize our experience with our members. Last but not least, as a CTO, I couldn't leave you without talking a bit more about technology and digital. So 1 last slide about our tech strategy. So everything that you've seen here wouldn't be possible without the right tech enablers. And so all of the enablers that you're seeing here are actually not new for cause, these are journeys that we started at least for all of them 1 year ago, if not, 2 to 3 years ago. And for some of them, we are actually very close to completion. The first one is cloud. The hospitality industry have been really late in moving the assets to the cloud. This is super important because it enabled us to onboard hotel faster, to deploy a solution faster and also to save cost. So on this part, we actually -- we had 52, sorry, data center and service centers. At the end of the year, we'll be at 6 left. So we've done a significant move here. And in terms of application, we have more than 50% of applications that have been migrated to the cloud and will be around 70% by end of year. So significant journeys that have been done here. On data, we spoke a lot about personalization. Obviously, everyone is talking about AI. We're doing a lot of AI use cases to personalize, to do revenue management, to pick up our calls with our customer care. So here, I'm super proud to say that we actually finalize our data platform. So this is really the infrastructure that allow us to bring all the data from the company together with a clean fashion, and so that we can leverage it across our channels and our experiences. Omnichannel, I mentioned it earlier, but again, we want to interact properly with our guests in a synchronized fashion around all our touch points. So we built some very strong partnership with Salesforce and Adobe on that front, the platforms are live, and we already see significant uplift, especially in our marketing activation. And the last one is what we call in our jargon, next-generation distribution. This is very important, distribution infrastructure was fairly legacy. We want an ecosystem that is open, that can connect easily to partners and other solutions. So we completed almost entirely our journey to build our API, our CRS is in progress to be replaced, and we are also moving at an accelerated path all our hotels to PMS Cloud. So around 40% of our hotels will have a PMS cloud by Q1 of this year. All of this, again, this is not tech for tech. It's really to drive more speed, agility and business value. That's it for me. Thank you for your attention.

So without further ado, I'm going to ask Brune Poirson to come here on a very different topic, Brune. Brune was a former Minister of the Emmanuel Macron's government for 5 years. Joined Accor a couple of years ago as heading ESG. If you want to see somebody draconianly committed to biodiversity, to carbon emission, to plastic being removed, to so many endeavors. She's the one, she walks the talk.

Thank you very much, Sebastien. Good morning, ladies and gentlemen. So as Sebastien said, I'm going to detail our priorities in terms of environment, social governance, not only our priorities, but what we have achieved and when we will achieve. First of all, everything we do is grounded in science and a performance culture. We think this is critical. This is critical because there's only so much you can achieve with moral arguments and with moral issues. And also because this is the strong basis for our strategy, is a strong basis to measure our performance. What we're seeing now and it's not me saying that it's really the science. It's really the findings of the IPCC reports, of the IPBS report, of the UN Sustainable Development Goal reports is that clearly, we do have a responsibility. Travel and tourism is responsible from 9% to 12% of greenhouse gases emissions. It's not specific to our company. Obviously, it's the entire sector on the one hand. But on the other hand, in some areas, and Sebastien has detailed that thoroughly in the introduction. In some areas, we employ, we provide, we cater to the needs of up to 70% of the population of some specific -- of some countries. This is huge. That gives us a responsibility. And really our view, our vision and it's not only a responsibility, it's also a key and Accor business driver and I will come back to that later is that our vision is that we want to reduce absolute carbon emissions to reach and to contribute to a net-zero world by 2050. We also want to preserve natural resources and contribute to a nature-positive world. And we want to put and keep putting because this is what we've been doing for years now. We want to keep putting people at the heart of everything we do. So talking about the findings of science, what the IPBS and the IPCC report tells us is that we need to put people and nature at the core of our strategy, not only sustainable strategy but also the rest obviously, of the business strategy. And this is what we are doing, and I'll detail that. And when I said that, what's the vision? Our vision is that we want to make every stay a contribution to society and the environment. We want to become the preferred partner for our owners, for our partners. We want to turn sustainability into a major competitive advantage. We want to make the most of the fact that we are a European company, and it can help us based on sustainability, conquer new markets and go even further. Now when I've said all that, how do we do that concretely? First of all, by operating our hotels within the planetary boundaries. What it means is that we need to build our refurbished hotels that are sustainable by design. We also want to operate our hotels in a more and even more, and we can constantly do more sustainable way through eco-certification, and I'll come back to that. And we want to monitor closely real time, what is our performance, where we need to do better, where we are already doing great. That's for hotel operations. When it comes to food and beverage, you don't ask me why are you talking about food and beverage? Well, obviously, because we have more than 10,000 bars and restaurants, but also because we know that soils, we know that nature, agriculture can actually capture a lot of the carbon that is in the atmosphere. So that's a key area that we have to focus on. And how do we do that? Well, first of all, by doing everything we can to contribute to the food revolution and to the agricultural changes that need to happen. How? Obviously, by reducing food waste, by also sourcing food differently and we work very closely with Caroline Tissot's team, identifying where is the food coming from? How has it grown? Are we providing the best products? Are people staying in our hotels doing -- getting access to the best type of food and services? And we need -- and that's what we -- it's already underway. We need to keep shifting food consumption, better products, more local products. And finally, it's about finding new ways and helping to redefine generally the way we travel. And it's done by sharing space with nature better in a different way, measuring our impacts. Thinking twice before building a hotel from scratch rather than refurbishing one that is already existing, for example, building stronger ties as well with the local communities being really embedded in the local communities. And finally, working closely hand-in-hand with our guests because a lot of them, they want to do more for the environment. They don't know to do more, but they want to travel without guilt. They want to enjoy. They want to have access to better products. So we want to partner with them to raise their sustainability awareness as well. So I've shared the strategy, the vision, but now we need a plan. We need a methodology. We need to make sure that what we decide and what's in the report actually gets changes and gets implemented on the ground. And how do we do that? Well, first of all, by changing and putting in place a very strong and robust governance that allows us to drive and monitor extra financial performance. And I say extra financial performance, and I really insist on that because to us, and that's not only because of the European regulation. But for us, financial and extra financial performance are exactly -- are the 2 sides of the same coin. And we're putting in place the right way of making sure that we perform, that we measure our performance as well on a regular basis. And second, when we want to as well is that sustainability and it's happening, you'll see, sustainability is not only my job or the job of my team, it is everybody's job. It doesn't come in addition to what people do, it comes with all along what people do. And it has allowed us to deliver, and I will show you later how. So we have a whole governance in place that allows us to measure, to monitor, to make sure that things happen on the ground, all the way from the Board of Directors with a specific ESG committee that is headed by Helene here all the way down, and when I say down is by no means down, but like collaboratively with the operations. And as you can see, I won't detail everything. But as you can see, we're working with procurement, finance, development, marketing, sales, IT, operation, I can go on and on and on. It's really a joint project, and that's how we managed to deliver. And finally, another reason as well why we deliver is because we take sustainability seriously. As you can see, it's about 15% -- it's not about -- it is 15% of our CEO step and 20% for long-term incentive plans. So as you can see, it's really embedded across the company, across teams to make sure that we deliver. So talking about delivery. Let me perhaps deep dive into -- I'm not going to detail everything again because we only have 15 minutes, and Sebastien told me that I need to stick to my time because when I get a mic, I tend not to put it aside. Anyway, so let me just dive into the key KPIs. First of all, carbon emissions. We've managed to reduce them by 15.8% for Scope 1 and 2 versus 2019. Carbon measurement, we have overachieved as I told you, we want real-time performance monitoring. So we are rolling out one of the best tools on the market with one of the best companies, Schneider. And we're rolling it out. And our objective was to get to 60% of hotels last year that have put in place a carbon measurement tool. We are at 71%. Our operations team did an amazing job. Talking about great job, look at the plastics. 84% of our hotels have removed 46 single-use plastic items from the customer experience. 46 items, it's huge. 84%, it's even more than the target, which was 80%, and it's still underway, and it puts us really ahead of our peers. We are leading on that. And not only are we leading, but I think we're also designing and showing policymakers that actually private companies can be ahead of the regulation. That's what's being discussed at the EU level right now. On ESG training. I talked about a methodology performance governance. What really matters as well is that awareness and mindsets actually of the entire company shifts. Everybody needs to learn more about sustainability. No one was born knowing sustainability by heart. And this is why we rolled out an ESG training program where every single of our employee went through 6 hours of training. That was a long training, but I think it really helped us create a movement within the company. And finally, last but really not least because it's been a focus of the company for years now. It's women in leadership position. We've achieved 39% of women in management committees, and we're proud of that. Now in 2023, what do we want to do? How can we go even further? On people, 40% of women in management committee, that is the objective. We want to strengthen human rights. We know that post COVID, things are more difficult for some people. Sebastien detailed what we did and how we cater to the need of our employees and even beyond. But we want to strengthen that even more. Similarly, with women empowerment and social elevator. And I'll come back to that later. We really want to provide and to cater to the needs of people. We can really live them up, give them opportunities, give them a future, leave them from despair. That's our objective. That's what we're doing. That's what we're putting in place. On stay and the way we operate our hotels. We keep really focusing on carbon. We have absolute reduction targets. That makes us one of the most ambitious and we have a plan, we are rolling it out. But there are objectives and there's a plan to roll out but there are also behaviors, the way people actually behave within the hotel. There, we can -- we have trained them and we can and we -- it will allow us to actually get to 10% of energy savings, that is huge. And it gives us a competitive edge also. If you work with Accor as a partner, as an owner, you will get people who actually know how to manage the energy in the best way possible. On single-use plastic items, we want to have 11 more single-use plastic items to go even further and really keep pushing the boundary of reducing waste. On eat food and beverage, I mentioned that to us measuring is absolutely critical. So we are currently working on defining a baseline to -- for 40% of our hotels to set their own food waste baseline. We're training everybody. As I mentioned, behavior change is critical, and that gives us really a competitive edge. So we are training 90% of all the kitchen staff on reducing food waste. Finally, exploring beyond the boundaries of hotel operations, we are partnering and we will partner as well with low emission mobility providers, such as, for example, you've seen Eurostar and we want to train and keep training a lot of our hardest. Again, it's a continuous journey. If we want sustainability to be everybody's job, we need to keep training. On the targets, what's the road ahead? It's great to have objective in 2023. But given the magnitude of the changes that will come in terms of policy, but also as the science is actually finding -- and getting more and more findings, we need to find the way and define the way all the way to 2030. This is why you must have heard about SBTi, science-based targets. That was for climate. The same now is being designed for nature. We are part of it. We are ahead of the game. We are defining what should be our priority for 2030, more specifically even on the issue of nature. So on stay, I've detailed a lot of it. I won't come back to that. But 1 thing perhaps that I wanted to stress is that on water, we are going to do even more. Both in terms of quality and quantity of water that we use. And again, we want to show that sustainability is a business driver. If you look at B2B businesses and you're all working for businesses, you all have your own sustainability targets. So you want to be working with a company that actually doing everything it can to lower its carbon emissions. And that's what we will show you and prove through eco-certification. Business is -- sustainability is a driver of business and growth. On eat, again, food and beverage, we want -- our objective is to reduce food waste all the way to 60% unchanged and shift food menus explore as well. We're working closely with Agnès Roquefort on business development, how to make it even more compatible with sustainability, maximizing as well the impact in the local communities, social elevator, I mentioned that and bringing on board Agnès. I wanted to deep dive on our carbon objectives. As you can see, they're ambitious, they're perfectly aligned. They were validated by the science-based target initiative by 2030 Scope 1 and 2 minus 46%. And for Scope 3 minus 28%. I showed you, we have the tools, we have the strategy, we have the training, we have the owner value proposition. We're rolling it out, and we are delivering on that. Finally, again, last but not least, on women and social elevator. This is a really strong focus. We are leading, not only in our industry, but also among some of the top European companies in that field. We are a preferred partner for the United Nations. We've been working hand-in-hand with a lot of other companies to really lead coalitions on this issue. And we're working with women all the way from when they need it the most to train them, to give them the opportunity to be empowered and to go beyond. And I say women, but we do increasingly the same, what we've been doing, but we want to push even further on social elevator. And finally, everything I've shared with you not only has happened, will happen, and we know we can always do more, obviously, but it is not only missing that and us measuring it. It's also externally validated. As you can see, we are among the top performers in our industry when it comes to extra financial performance, as you can see here. So as a matter of conclusion, I'll just say thank you for your time. Obviously, our focus, our objective is to keep bringing sustainability even closer with business performance. We are a European company, as a European company, the regulation is stronger, more demanding, we should use this and we are using it as a competitive advantage to get to new markets, to do things differently, to define new standards and to bring onboard even more people. Thank you.

So the moment we are all waiting for, is Mr. Jean-Jacques Morin, who for the first time we'll not talk to you about numbers, but we'll talk to you about business. So Mr. Morin, new job, new risk, just go for it.

Thank you, Sebastien. Thank you, everybody. So I'm delighted to address you in this new capacity being the CEO of premium, mid-scale and economy. I'm really delighted, I would like to again welcome Martine. I'm delighted also to see Martine coming on Board. And yes, thank you, Maud. I need to look like. And thank you, Maud. Maud is everywhere. She's like my second mother. I don't know she's going to be delighted by that. Anyway, more seriously, I'm delighted to be with all of you. The way we're going to talk about the PME strategy, is by me brushing, in fact, the priorities. But I also would like to welcome on stage Patrick Mendes and Duncan O'Rourke, please, if you like to. They are the head of a very significant part of the business of PME. They will introduce themselves and give you some more data on what their scope is, if you will. But the one thing that they've got in common is they're tremendous leader. They know that business by heart. I think they were both born in the hotel business, not like me. And they are all -- both of them very international in their experiences. They've lived abroad. They have been traveling extensively in the world, and that's exactly what we need in Accor because that human dimension and the capability to understand various culture in order to execute is so key. So Duncan is Irish, Patrick is kind of French but he will tell you more. He will tell you more. Reflecting about the move from CFO to CEO, there is one thing that I have learned over the last years, which is embarking people is critical to getting anything done. And that's how we went through many transformations throughout my carrier. And that's really what I would like to go -- do and execute on as part of the PMO/CEO position. It's a very large organization when we talk about PME, and it needs embarking. We talk about company, a division, which is 90% of the network of Accor. So a very large number of hotels, close to 5, 7 hotel. It is the art, it is the essence, it is the heritage, it is basically the way you want. But that's where Accor was born 50 years ago. Mr. [indiscernible] and there is a lot of things existing in that division, as I will show you. Another number that would scope the size of what needs to be done is that we are talking here of a very large number of people working in the hotel, 230,000 what we call Heartist, which are people working in the hotel under the flag of Accor. Sebastien was mentioning the depth, the importance of the culture in Accor. And so in order to go and direct the boat in any direction, that embarkment is critical, and we've got, in fact, a great base to start with. Today, I'll talk to you about PME strategy. A couple of reflection here on strategy. I've been looking and discussing with the management team for now several months of what we should be doing. One thing that becomes clear here is the fact that we do have good strategies. The problem is we have probably too many. And when we start the strategy, we did not necessarily go for the last mile. So that's a little bit of a problem, and that's what, as a management team, we plan to really focus on. Sebastien has been using extensively the word focus. You will see that I use the word focus even more extensively in the rest of the strategy presentation that I will do. There is a common underlining here, which is, in the end, strategy is what you don't do. It's not so much what you do is what you stop doing. When you do that, normally, you arrive to something which is a good strategy. And so the focus is basically with the team, with the management deciding on what we want to do in order to get the results because in the end, the other element of what we've tried to do is to go for what is called in the rest of the presentation by profit from the core. And the idea behind it is that where you can optimize the performance of a given body is by focusing on what you do well and do it even more. It doesn't mean that you shouldn't be innovative. It doesn't mean that should be looking at other things. But naturally, every one of us is good at doing things. And when we deliver best is when we refocus on what we do best. And so all that focuses, all that profit from the core will be based on that thinking, that statement. So that's what we're going to go through. And last but not least, on the comment of not going for the last mile, okay, execution is critical. And so we will make sure that, as you say in English, we stayed the course, i.e. we say something, we do it, and the next day, we do it even better. With that being said, I would like to go through the strategy itself. We start from a great base. You've got on the left what PME is today. In fact, it addresses the largest, most resilient hospitality segment. I'll show you that. It has a very strong footprint, a very strong whole footprint. It has a very nice portfolio of brands. And as I introduce potential for further optimization, the strategy is on the right. The path that we will go together today on is profit from the core, which is focusing on brands, focusing on markets, focusing on the industrialization of the process. That's all what it is. And if you do that, then utilize profit. So that's on the overall statement of where we stand. I'd like to now make you kind of overview of the market positioning, which was the left part of the slide I just went through with you. And you can see that if you look at the addressable market, it's an important notion. I'll talk about the addressable market in the rest of the presentation. The accommodation by itself is a EUR 1,000 billion business, EUR 1,000 billion business. If you take off rental, if you take off the U.S. and China market, if you take off luxury, you've got what is addressable by PME. And we discussed here of EUR 300 billion business, which is split, as you see, between eco, midscale and premium. And remember the number 36% of the market being premium because I'll get back to that in the strategy. You can see on the right part of that table that the dynamic by which we go through. Sebastien has been mentioning that, that's a blast industry. We grow year after year. We make more business every year. You can see here before COVID, it was growing by 7% a year. And in the current year, what the market data that's coming from lux, economic scale monitor is discussing an 8% growth. As you have seen in the guidance that we published this morning, we are way above the 8%. So the most resilient and the largest hospitality segment, resiliency is the fact that midscale and eco are fundamentally less affected by crisis than they are the rest of the segments, luxury and midscale. And we saw that so well during the crisis with Wyndham and Choice as Sebastien illustrated earlier. If you move to the positioning, and I mentioned the leadership, the strong whole position. You see here the various geography in which we are and I talk addressable market, i.e. I am going to exclude from the rest of my discussion, the China and the U.S. I talk about the rest of the world. And so in Europe, we are, by far, the largest in that segment in Asia Pacific, the same, Middle East, the same. South America, the same. And you can see that Europe in itself represents more than 60% of what we do. So very strong positioning in terms of geography. You do the same by segment, and you've got about the same data i.e., economy is 37% of what we do, and we are way above the [indiscernible] in our markets. Our market share is 18%, the [indiscernible] is at 6%. Same thing on midscale and economy. So again, here, very strong all that are the legacy of 50 years of work by all my predecessors and the team in Accor. If you want to look at the snapshot of the premium, midscale and economy division, here is the table I will not talk more about geography in the rest of the presentation. I'll talk about brands. I'll talk about development. Because I have Patrick, I have Duncan and they will illustrate for you what's happening in the geography. They will illustrate for you how the various levers, which are the strategic levers will be declined in each of their geography. One data point here is the operating model. You can see that we are 30% franchised in terms of fees, which corresponds to about 36% in terms of rooms. And I'll get back to that data later in the discussion as moving to more franchise is one of the lever that we will push. If -- just a last slide on the positioning the brands. In reality, if you look at the right table of this page, you see that 87% of what we do in terms of business is made into 2 buckets. The iconic brands, iconic being defined by ibis, Novotel, Pullman and the conversion brands, which we've got the list here, which is Mövenpick, Mercure and [ Retail ] and greet. So focusing is, in fact, not so difficult to do because the portfolio is already very well focused. Doesn't mean that you don't look at what is in the other pie, but the other pie addresses a more dedicated market like Australia or the extended stay as an illustration here. So we have a portfolio that allows us to be focused. I move now into the strategic priority themselves. You saw that table, brands, markets, industrialization, I'm going to go and detail each of those pairs for you. Talking for brands. On brands, we've got 3 things we want to do. Focus on iconic brands, leverage the conversion in order to increase density and reinforce brand standard. That's what we want to do. On iconic brands, just a very simple snapshot of what we call iconic. Ibis, it's the best noneconomic brands in our addressable market. If you are to look worldwide, it's the third best known brand in the economy, including the U.S. and China. Novotel is top 3. Pullman is the oldest brand in hospitality. Pullman dates back 1867. It has been in the portfolio only for a few years, 2007, but it has been in existing and hence, has a very strong DNA and potential because it has more than 100 years existence and we can build on that. I'll show you that. If you deep dive now on each of the brands, the iconic brands, you will have for each of them, 2 pages. One, which is a snapshot, the messages you want to keep. And the other one are the value proposition. So ibis, 2,500 hotels. It's 37% of the business. So a huge contributor of the business and its 3 different branches that addresses different needs. What does it mean? You look at the value proposition, you've got ibis blue, ibis red, ibis green, for those of you who can't read. So ibis blue is affordability, it's low cost. Ibis red, is social connection. Some of you may know about ibis music. And ibis style, it's in fact, as many properties as different hotels. You've got more than 600 hotels, and they are all each different. That's what we call ibis style. If you go to Novotel, again, the ID card, it's 500 hotels. It's 24% of the fees, and it's a leading brand for families. I think we've all experienced that. It was the first brand of the portfolio of Accor. It was created back in 1967. Looking at the value proposition, family entrance were very good. That's where we've been baking bread and butter. What we need to do better, improve the value proposition is on making it also a business efficient and flexible solution. i.e., doing a little bit organize in a way which is using the facilities as they exist and on top of that, do what people are looking for post COVID, which is including an element of lifestyle into it, balancing the life fitness, you can read it. It's all the things that people have now as part of the top of their agenda in any of their trip. If you move now to Pullman, the world oldest brand, I've said that 5 times, but it is only 7% of the fees. And in fact, you may know or you may not know, it has always been a very innovative company. It's the first company that was creating links between The Times, for example. It's the first company that launched luxury carriages as 2 examples of things that were done long before we were born. And so that's what Pullman is about. Pullman, we've got some work. I think we do well on business, but we are not so good at blending business, so-called leisure, which post-COVID has been growing so much in value and in size. And so we need to give to the Pullman standard, the capability to be offering something which is more of a blended business solution. On top of that, post-COVID, socially being very important. And there here, we've got some things going on in order to create restaurants with the help of Ennismore that will -- I'm sure that we've got an offer, which is more to the tune of the air, I should say. And I was talking to you a bit innovative. I mean, Brune was talking about the importance of everything which is eco. And we've got an eco-certified design, which is ongoing in Pullman, that's exactly where we want to be because that's exactly where the customer will go more and more going forward. I now move to the convergent brands. We, at Accor, have always been super good at conversions. We are much better than the American competition at conversions. We do close to 50% of our development through conversions. And this is obviously true for PME, you see on the left part, the brand that are historically very strong, the Mercure close to 1,000 hotels and Mövenpick, 120 hotels, a brand that we acquired back in 2017, 2018 and which has been doing super well. So we've got those engines. And what we do there is that we are complementing them with greet and Handwritten. You may recall, we launched Handwritten a couple of months ago, it's a collection brand, and that's exactly where the market is heading. Now why does the conversion matter? Because, in fact, in a world which is restricted in terms of available capital, in a world which is so much ESG, I would say, focused are getting more and more ESG focused. I think Brune is working on that. We have, in fact, a solution here, which is a much better solution than building up a totally brand-new hotel. So not only it's faster in terms of cycle time, but it fits the requirement of the market. And by the way, the 2 things I just mentioned are not going to disappear for the next years. They are just going to continue to accelerate. So we are here very well fitted and this is 1 way for us on top of the iconic brand to continue to intensify, because the iconic brand being super strong in their market, that's the way by which you can add on. I would like to finish on the brands by something which is maybe less funny, but in fact, at least as important, which is compliance to brand standard. Compliance to brand standard is just the fact that if you want the brand to really get a strong print and be able to be, in fact, getting the recognition that it deserved, it needs to be pure. In order to be pure, it needs to respect standards. And so that is based on guest feedback, but it's also based on product standards. It's also based on ESG elements. And so we've got a brand that has been running on for some years that we're going to accelerate to just make sure that if we focus on brand, the brands we focus on are perfect. This is -- I'm not going to talk about numbers, but nevertheless, I kind of like to talk about numbers. So this is going to cost me somewhere between 0.5 to 1 point of net unit growth, doing that, but it is for the better of the brands going forward. So I saw my friend from Bernstein is working up when I talk about numbers. I'm moving now to the market. So on the markets, 2 things, consolidate the leadership in midscale and eco and see how we can capture our fair share in premium. So we are very good in midscale and eco, consolidate, and we are not good in premium, go further. So on midscale and eco, it's easy. We are in 110 countries. We're just going to say that 90% of the development plan will be done in 30 countries. So just refocus the effort, get people to really work on those countries. And you've got, by the way, the little flags. Don't ask me necessarily all of them, but I think I can find that on the web. But you see here, it's really focused, and that's what we want the people to do. The development teams, if you let them go, they're going to do anything and everything. So I need to put a little bit of discipline here, which I will. [ Cahill ], I see you smiling. So that's good. [ Cahill ], please wake up. If you want to sell ice to an Eskimo, ask [ Cahill ]. He's the best salesman I've ever seen. I'm super smart, coming from private equity. So very, very deep understanding of what the number means. Thank you, [ Cahill ] for that. Premium, this table tells you it all. It is 36% of the market, I showed you that on the first slide. Remember, I told you to remember that number. We have 5% market share when in the rest of our business, we are more at 12%, i.e., we're 50% less market share on premium than in any of our other businesses. So we have not done the job here. And the fee in that segment is at minimum 30% higher than what you can get into midscale and eco, which is no different that what Sebastien has explained when you grow the latter, obviously, you get more fees. And so we just have built up with [ Cahill ] and the team, a very strong expansion plan in order to get the percentage of our share in premium to grow in the next years. So that's about what we do on markets. I'd like now to talk to you about industrialization. I know it doesn't sound so well in the hotel industry to talk about industrialization. I was told not to use that word. And I have not listened. What I mean by that, I've spent my career in the industry. For those of you who may not know, I've been working in semiconductor for 13 years. And then I worked in engineering on high speed train and gas station for an additional 10 years. So I've been born into Six Sigma quality, Kanban, all those things. And it doesn't always pertain to each and every model, but there is one thing for sure that you can do is bridge the gap. So from where we are to where we could be, there are things that we can do, and that's what we are trying to put on that slide. It simply means being a little bit more disciplined. We've got Alix which is going to prove -- give us a wonderful digital landscape. And hence, if we just use the tools, be disciplined in the development strategy and continue to work as a continuous improvement plan on any of the processes and things we do, then we are going to improve our performance. That's what the whole industrialization. Development. It looks like a complex table. It's in fact, super easy. We've been doing mostly management for the last years. We're going to move and do more franchise, but we're going to do it in a structured manner. There are places where it makes sense to the franchise. There are places where it doesn't make sense to do franchise. Anything here, which is in our hands is where we want to keep management or at least management preferred or management only, management only being in prime location within large capitals or international cities. And there are places in the suburbs of the so-called Tier 3 cities in which franchise makes a lot of sense because we're not going to create the structure in order to manage those hotels if they are remote, and we don't have the density. So that's all this slide says. So this is what we will execute to. This table, I think Alix talked of all of these systems. She did it probably much better than I can say. I just say a couple of things. Revenue management, you said it super important for money. If you have the right revenue management, and we will get an automated solution by 2024 in each area of our 5, 7 hotels, it's several points more of RevPar. PMS, it's the art of the hotel. And so it's the block that you absolutely have to be on the cloud-based solution. It's going to take us a little bit more time. We're going to be out of the 5 Sunhotels, 1,600 would be on cloud by the end of 2023. And then the rest will take a couple more years to get there, but a strong push plan here again. And CRS on this one, it was super well explained the necessity to get through that distribution about all with all the results we've got does rely on the CRS solution of quality. And so that's what we are working on being held, notably by our friends from the edge, [indiscernible] the people that we integrated in the teams a couple of years ago. One slide on continued operational excellence. Specialization, simplification, automation, Patrick and Duncan will give you illustration of what they do in those into their own presentation. But [indiscernible] means just that you put all the experts together. It just means that you get density on the teams we've got knowledge and you put them in 1 place, which help them being better because they are together. You may collect such services but in fact, it's not the right wording. You can -- for example, one of the things that we are doing in sales and marketing. And I see [indiscernible], who is the Head of Sales and Marketing in our team is to put, in fact, cluster of sellers and clusters of marketers. So it also applies to very operational functions. So that's what we do. Simplification. I mean, Patrick and Duncan will explain to you what they do on the regional hubs there and automation. A good example of it, Steven Daines, our Head of HR, is sleeping around there. Steven, do you want to say hello? He's not sleeping. I'm just a bad man. And on that, for example, we put a solution by which the payroll will be a centralized payroll for as much as we can. So the less we are in many geographies, the better we are at putting those kind of solutions and helping in the end, the people that work in the hotel and other things just like recruitment, education, trainings through global framework systems. That's about operational excellence and discipline. I'll close with the slide I started with. And I think I've illustrated throughout my pitch what the various blocks, the various pillars of the strategy are the focus on the brand. The iconic relayed by the conversion and on top of that, a good quality of brand standards. The focus on the largest -- focus on market, if you will, premium and midscale, a very focused development plan so that we don't go in each [ underaction ] but get to the places where we know we've got the density to get more density and it's even more leveraged to the financial statement, the P&L. And on top of that, looking at the nuggets that we've got in our hands, which is called Pullman and what we can do with Pullman from Pullman. And I think here, it is just the fact that we've got so many brands that we added to the portfolio that in the end, it's a question of getting it at the top of the various priorities. We went through a significant amount of transformation over the last 10 years. And so this is one of the of the things that we did not -- did the right way, I should say. And the industrialization of the growth model, I think I went through that, and it's pretty clear, a clear development plan and then some optimization and the tools that help you being industrialized. With all of that, we should see more EBITDA and so IP shareholders and IP employees and IP owners because when we do all those things, everybody benefits from it. I think this is it for me. So what we will do now is hear from you, but there is 2 movies that we've done. One is on ibis. So we'll listen to that now. And in between Duncan and Patrick, there will be another movie on Pullman. So please, on the movie. [Presentation]

Good morning. Well, I just want to say before I start, we're having fun, we having a lot of fun since we start and I just wanted to say a few words about what Sebastien said at the beginning. I can tell you, since we decided Duncan, I, Jean-Jacques and all the teams here to take the new roles, it's complex. It's tough, but it's -- I can feel a lot of energy in our teams, fun also, that's why I'm kidding them by saying fun but it's important. People are really engaged and being focused on both brands as one of the key elements for this reorganization. Well, I'm very happy to be here. I don't know if it's appropriate, but I will do it anyway. Sebastien asked me present yourself, introduce yourself because they don't know you. It's the first time for me that I'm in front of all of you. So we'll spend a minute presenting myself before I start to talk about Europe, North Africa. So I'm -- you were asking my nationality, I'm Portuguese, French or double nationality. I've been living abroad for roughly 20 years. Passionate about hospitality, extreme sports, travel in general. And I've been working in different functions in corporate and in operation, started in hospitality in another company after I worked for many years for Edenred that you probably know all of you, and started with Accor 18 years ago. And Accor had 3 periods, very different periods. I started in global sales or international sales with 2 clear mission: 1 built big offices, out brand offices. So we opened Japan, Korea -- South Korea, Dubai, I was managing the U.S., et cetera. And the second part was the beginning of the negotiation with the big distributors: Booking, Expedia, travel agencies, [ Castong ] only, et cetera. So that was my first job for 5, 6 years. After, I move to operation and I stayed 9 years in Latin America. I was based in Sao Paulo, beginning managing operation, luxury, premium and midscale, and I became CEO of LATAM after 3 years. With a mission to transform a group really [ medical ] in Brazil to a multi-segment from [ Super Accor ] to luxury in Brazil and the other Latin America countries, Colombia, Argentina, Peru, Mexico, et cetera. In a very tough economic environment, as you know, but that was a great experience. I came back for the third part of my career at the call 3 years ago, where I had a pleasure to lead SMDL, a big name, that's sales, marketing, distribution and loyalty and digital for 3 years. So was with also [indiscernible] and Alix and all the people you will be referring to with a tough or difficult environment with COVID preparing the rebound, mainly preparing the rebound, eliminating overlap, of course, cost optimization was the objective of those 3 years, and I'm happy to say that after those 3 years, we are back to equilibrium in 2022 and we are now serving or starting to serve seriously the wave of the recovery since mid-2022. Well, so in 1 minute, I'll try to do a summary about what I did. I've been through a lot of transitions, a big reorganization, and I'm very fortunate and happy and privileged and thank you, Jean-Jacques and Sebastien to give me the opportunity to lead, of course, a big region that I will present to you now. So I did the wrong one. Yes. So what is Europe, North Africa? The big overview or a simple overview. We are the #1 player in the region, far from the #2 with roughly 3,000 properties in operation today. And more or less 400 hotels in the pipeline. We have 364 here, but we have a team developing every day. So we will have roughly 400 properties in the pipeline. It represents more or less 50% of the whole PME globally. So it's a big region. And you will see after with Duncan, we are -- with those 2 big regions represented roughly 80%, 85% of the volume. We are operating in many countries, in 45 countries, but I will tell you after the focus will be on 5 main regions in the region. More than 100,000 Heartist or talent that we are managing or that are working in one of hotels either in franchise or in managed. And interesting, very different from what Duncan will present to you, franchise and managed. Today, franchise represents 39% of the fees even if it represents 56% of the rooms. And we will maintain roughly 50-50. This is a target, 50-50 between franchise and managed, which mean we will develop more franchise hotels in the years to come in the Europe, North Africa. In terms of split, again, very different from other regions. In Europe, North Africa, we are mainly eco and mid. It's good but it's also bad, good because we are far #1 with ibis, with Mercure, with Novotel, as you can see, the blue is economy. So it's 47% of our fees and 47% also is exactly the same. Our fees are mid-scale but only 6% on premium. And here, I think we have a big potential, as Jean-Jacques was referring to a minute ago. I say we can double that. We can double with the new brands we have, Mövenpick, Swissotel and also with Pullman, which has a big traction in the region. But we've been perhaps a bit behind on Pullman. So this will be a big push of my team and myself, I was part of the team that created Pullman a few years ago when we decided to upscale Sofitel. So really, I think we can have a big push on Pullman and achieve 10% to 12% of our fees in the region within the next 3 to 5 years in premium. In terms of geography, as you can see, I told you 5 core markets. 83% of the business of the hotels or the fees are in 5 key markets. France, what we call [indiscernible], which is Germany, Austria and Switzerland, U.K. and Ireland, Benelux and Poland. In both markets, we are all #1 or #2. In fact, we are #1 everywhere but in the U.K., Ireland, where we are #2. So big market, big strength, big platform, and I will tell you after what we will do on those markets. We are seeing on the right, 2 new markets or 2 growing markets, where we will focus a lot on the next 3 to 5 years. Mediterranean, you can see already 31,000 rooms. And I'm talking about leisure and not only [indiscernible] and Mediterranean, I mean, Spain, Italy, Croatia, Greece, Morocco, both countries have a big potential. And we are seeing a lot of potential for leisure even for mid, eco and premium brands. And the new one, Eastern Europe, everywhere or everyone is going to Eastern Europe. They have buyout InterContinental, growing fast in this market. It's a market that will grow for the next 3 to 5 years after it will be done. So we will focus also -- we're already focusing with [indiscernible] our Head of Development on Eastern Europe for the next 2 to 3 years. Now, so you've got the ID card or what is Europe, North Africa, I will focus on what will be my 3 priorities or our 3 priorities. Of course, we have many more priorities. But I wanted to focus on 3 key ones that will impact, I think, EBITDA, client perception, attractiveness of our brands for our owners and for our talents. The #1 and for me is clearly the #1 after 5, 6 months. I've been traveling a lot in many cities in many regions. I've seen very good surprise. Some of them not as good, but clearly, we need to gain consistency. And that's why I'm putting here network growth and modernization, and we put here 3 pillars. The #1 is consistency. So Jean-Jacques explained that earlier, we have great ibises, great Pullman. We have some other that are not at the right level, this is why we have the pure project, pure means we want to reassess and to define who are or what are that attracts us, the hotels that are not playing the game in order to find a solution. Solution can be investment, can be a rebranding, can be an exit. But we will do it, and it is a priority #1. Number two, as I told you, we are having fun. Clearly, when we -- and I say we, I'm putting in the same boat, Mr. Duncan and myself, when we accepted the challenge, and we're coming more from premium and luxury originally, to take the lead of premium, midscale and eco is because we think that those brands are wonderful. And I was much not surprised by visiting a lot of hotels. But the energy with ibis, the energy that I can see with Mercure, the local flavor you can fill in those brands, we think we have a lot of space here. A lot of space to you maintain standardization perhaps behind the scene, but you can increase experience, increase design, put F&B, food and beverage, event, fun, music in those brands. It's not only for lifestyle. But we think that we can remodernize, we can give some -- yes, I was saying fun, but be more funky on those brands, and this will be part of my job, and I will put all my energy to make sure that we are transforming those brands, putting design and experience at a center. And last, communication. We did a lot, I'll show you after, but the market does not know. Sometime, we think ibis is still an old brand in certain countries when we have already lots of properties. And I can be straight out here. These has 3 hotels, ibis, Novotel and Pullman, 3 different brands, 3 recent hotels, you would never see that or will never think that it is an ibis, or Novotel or Pullman. So it's sure that we did the job or they did a job before me, the previous CEOs, and they started to renovate many hotels. In ibis, 30% of the network is already renovated. 40% of Novotel and 50% of Pullman. So the journey has already started. I'm not starting from scratch. I just want to accelerate the modernization of the network. And how do we do that, convincing owners. I'll give you an example here. I like this example. This was last year. After 1 year, we took all the renovated hotel that we renovated in 2021. What was the impact in 2022? Plus 8 points in guest satisfaction, plus 15% in RevPAR. This is the best way for us to convince an owner, not to commit that it will happen, but to do everything to make sure it happens. And it's happening, plus 50% of RevPAR so you can, let's say, recover your investment in 3 to 5 years. Point number two -- our priority number two, profitable growth. As Jean-Jacques was saying, we won't grow everywhere. We will focus. And here, we have 2 clear buckets. Bucket number 1 on the left, focus on our top 5 markets, as I explained to you earlier, and it is clear. Densify, densify, densify in the U.K., in France, in Benelux, we have potential to densify more mid-scale and more eco and we will use conversion brands. We do more than 50% of our development in Europe, North Africa through conversion. We're yielding those brands, Mövenpick, Mercure, ibis styles, greet and Handwritten. Those brands are easy to plugin. In 3 months, you can transform a hotel and, of course, very important catch-up on premium. So this is for the whole perimeter of PME, but it will be instrumental for Europe, North Africa to catch-up on premium. On the right side, be opportunistic. I touched a bit earlier. We think there are 2 very interesting pockets or buckets. One is Mediterranean Basel and I was explaining leisure, historic destination, sun and beach, ski, we have a lot of potential there and a lot of business coming which just opened in Benidorm, we open in Croatia. We opened a new hotel in Malaga. So a lot of openings that are happening on historic and leisure, all sun and beach and other to European Eastern destination. Third priority, important one for cash and for EBITDA boost margin through optimization. Of course, we say we don't like the word industry realization. But in fact, it's happening in the region. By merging North Europe, South Europe plus a few countries in Northern Africa, we optimize the organization clearly. So we have now 1 leadership team for the whole Europe. We have created a center of excellence. So for example, revenue management is managed through the U.K. for the whole Europe, marketing through France, for the whole Europe, et cetera. We reduced roughly 10 to 15 offices. It doesn't mean we are living countries, but we are using our hotels with co-working space instead of having offices opening everywhere. Second, we industrialize the management by having a franchise organization, roughly 50% of the operation and another side management operation, a very different way to manage operation and management. So we have a dedicated organization for both sides for the whole Europe, North Africa. And third, scaling development by using our multi owners or multi-geographic owners. We have more than 35% of our owners that own hotels in France, in Belgium, in Germany, we are managing them now as 1 owner, and we are accelerating. I was telling you roughly 50% to 60% of our development today is done with existing owners. So it's key for us to maintain a great relationship with our franchisees and our owners multiplying or increase the market share with them. On the right side, it is an interesting one. Post-COVID, 85% of the business in Europe for PME are European. So it's intra-regional flows. It doesn't mean that American or Brazilian or Southeast Asian are not interesting for us. But by having 1 organization, defining I want to push in the U.K. for Morocco or for Spain. Now for the summer, we have only 1 decision-making process. We don't negotiate in between different organizations. So one organization is managing the full intra-regional flows which represent 85%. To conclude, and we did the same slides Duncan and I to illustrate what Jean-Jacques presented to you earlier, how do we implement in our region. For ENA, number one, modernizing our network. I told you, we have already 30% to 40%, which is renovated, we need. We have work to do to modernize and to have a network more consistent. Number two, profitable growth. Focusing, densifying our market where we are the leader, the core market and be opportunistic in 2 big markets: Mediterranean and Eastern Europe. And number three, industrialize scale, use the fact of having a big organization managing 3,000 properties using our platforms, our center of excellence to gain the margin and to boost EBITDA. So this is a simple plan. I'm very happy to take the lead and I have the full team ready now to start and to put all our energy in Europe and South Africa. Thank you. Now I have to introduce my friend. [Presentation]

Still good morning, good morning, but nearly time -- this is good afternoon. Nearly time for lunch. Duncan O'Rourke. Sebastien did mention briefly my previous role I had from Dublin to Vladivostok, and I actually thought that was just a wonderful region and theater to play in until I was given the opportunity deep dive and manage Middle East, Africa, Asia Pacific. And just when you hear those regions, I'm sure you understand and get excited as I do about it. I have experience. I have worked in many, many different continents and different companies. And I've saved the best for last joining our call showing my age here a little bit as well. But really excited about that. In -- just in 6 months, and so Sebastien had mentioned in the first 6 months of this role, I'm really excited what progress is made, that significant progress we have made in this short span of time. We've not only implemented really crucial initiatives but also charted a clear path forward for this region going forward. The region is now run by one team. It will usually be 3 hubs. It's run by one team, but we still keep those offices in those regions, and that gives us that competitive advantage of being closer to the owners, closer to our guests and closer to the employees. The leadership team, my leadership team is efficient. It's effective, it's passionate and it's lean. There's only 7 people in my executive committee team there, which is -- and I'll take you through that, leads to a faster productivity and efficient process. Patrick showed you his plate there, mine as well. I'm also #1, like [indiscernible] in Europe in my region also #1. 29% of PM&E's rooms count. We're growing that, 985 hotels opened, excitingly 279 in the pipeline coming as well, 40 countries, 130,000 talents that we have employed, Heartists that we call them. And then that mix there, you see there in the fees there, 89% coming from the managed side of it and in rooms about 83%. So a little bit different there to Europe. It's a very heavily driven managed side, which is extremely beneficial to us with business as good as it is in terms of food and beverage and incentive fees going forward. The fee breakdown, as you can see there, of 89% for managed hotels versus around 11% for the franchise hotels, and that just shows you that contribution of managed, which I mentioned. Furthermore, the mid-scale, and that's very different a little bit. The mid-scale segment still is the largest of what we have in this portfolio, accounting for around 45% of the BTI fees and around 43% of the room count, just slightly above premium. We do feel and we still see, and JJ mentioned that in his strategic presentation there, we still see there's growth in the economy segment with these iconic brands with the Ibis's, with the Greets, where we feel we can protect our market share via franchise and different options going forward. And this is an interesting slide. It always -- every time I look at it, it really strikes me that. You look at this geographic region, 5 countries account for 2/3 of the rooms. In those blue with the ones you see there in blue, those 5 countries, Accor is clearly the #1 operator with over 600 hotels in those 5 and that's extremely important to remember and take through. Not only do these top 5 markets only showcase our strategic focus and the continued focus we will do, but it also clearly demonstrates our commitment to capitalizing on these growth opportunities in this very diverse region. And with that in mind, we have 3 strategic priorities exactly aligned with what Patrick does, exactly aligned with the PM&E strategy, 3 strategic priorities to operate in this region. The first priority is to continue to grow in our core market, fact. We're going to focus on the premium segment. We're going to increase our hotel portfolio by around 30% in rooms in the next 4 to 5 years. So we want to increase. Remember on this slide, it was 32% premium. We want to grow that by 30% in rooms in the next 4 to 5 years, really focused via that incentivized development team, which Kamal heads up. And a good example of that when we do convert in that premium, I've specifically put the photo of the Pullman Singapore, which opened in March this year. This should be caught for all of you who know Singapore well the Grand Park Hotel there. And since our takeover, we have increased the average rate there by 30% already. And so the owners are extremely happy, and it's clearly sending the right messages in a dynamic market as such. Simultaneously, we are really dedicated to protecting and expanding our market leader position clearly in the mid-scale and economy segments, where we can do this by leveraging the powers we have in franchise and these convergent brands, which are at our disposal. We're also going to accelerate on the expanding of these promising countries. And I'm just naming 3 of them already, but 3 big ones there. We're going to continue -- clearly to continue to play big in Saudi Arabia. We're already big in Saudi Arabia for all the obvious reasons. And I'm not saying just the PM&E, but our core is big there. We're going to underwrite this by opening a second support office and our core office in the capital, Riyadh. We have already an office in Jeddah. We're going to open a second support office in Riyadh. We're going to increase in Japan, we're going to increase our portfolio in Japan. We recognize the potential of this market. We're already there with over 22 hotels, but we're going to expand in there. We're going to add human resources, expand the efforts in there, and we're going to double the size of our portfolio in Japan in the next 14 months. Furthermore, we are very much determined to continue to expand our presence in India. Sebastien mentioned that in the opening there, largest population in the road right now. We have a very good presence in India, but we want to capitalize on that Indian market, on that growing market, on that middle-class segment. And it's no -- if you listen to what Sebastien said, and you also read and you know, you have probably read that already that the largest airline -- the largest airline order that was just put in, in the Paris show recently was by India. The largest in the history, the largest single order of new planes by India itself. And so we want to continue to expand in that presence in India. The second priority is to drive innovation in our products. We have established ourselves as a powerhouse, and I don't use that word lightly, but a powerhouse of new designs, new concepts and we continuously look and strive to innovate and involve the expectations, not only of our partners, but also of our guests. To support this development pace, we have 35 project leaders already strategically located throughout the region to keep up with the demand of development going through. And with this commitment already, we currently have around 79 ongoing renovations that aim to enhance properties, exactly as I mentioned, in Singapore, many, many more of those. We're very excited as well to introduce new concepts in the hotels, including the new concepts for ibis, the new concepts for Novotel and the new concepts for the Pullman as well. And furthermore, which I slightly mentioned already, we're extremely proud with the launch of this handwritten collection in Pacific and ready signed in Sydney as well. So we're well, well positioned in there to drive and innovate and keep updated with this development growth. The third priority -- and it's not by order. But the third priority, probably the most important in order this year is to increase revenue and margins via very effective operational practice. And so what did we do here? I mentioned before, we merged all the support functions at those regions, at those 3 regions and streamlined operations for maximum efficiency. We are investing in establishing shared service centers in low-cost regions. We can take advantage of this geographic theater we have and really going to low-cost locations and stabilize, centralize and optimize processes over there. And we have already eliminated, in the first 6 months, between 2 and 3 -- depending on departments, 2 or 3 operational organizational layers, which we had with this new structure. On the business benefits, it was just mentioned in the presentation as well, we are really focusing on scaling our revenue management systems and implementing them across the region. This is really -- Alex mentioned that already in the presentation. It's so important. We're going to have an opportunity to have around 89% to 90% of all our hotels covered with a professional, modern, updated revenue management system, which will allow us to optimize pricing, inventory management and of course, this distribution strategies that we have. China. As China is gradually reopening, we are really strategically well positioned to capture that outbound market coming through there by really tailoring offers via the marketing efforts we have already in place for the Chinese travelers. In 2019, it was around 103 million seats that left China. Around 58% to 59% of that came into Asia. So it's critical that we are ready, that we have the marketing campaign, that we are focused and be able to really capture what we want in there. And Patrick had this slide as well, and it's aligned with JJ's slide as well, and it's important as well. And so in the essence of all of this, in this distribution, in this development, in this synergies, in this optimization, we're really going to continue to accelerate our market growth, absolutely an imperative. Secondly, we are innovating our products to be the best-in-class, to increase revenues. I gave you the example in Singapore. With all the margins and really contribute -- and we already see that happening with these better margins contributing to the EBITDA growth and the drop-through, which JJ enjoys to see so much. So we continued to drive that forward as well. I wanted to end quickly with how Sebastien started and acknowledge -- I've worked in many, many companies, not many, but a few good companies in this industry. And I wanted to end with exactly how Sebastien had started. All of this, what I just presented here is only possible with this tremendous talent that we have and that I have at my disposal. It is second to none, and I'm speaking from experience here, second to none. The fact that we have this tremendous talent, the fact that we can retain this talent, and just as importantly, the fact that we can attract from other companies this great talent coming in, really gives me tremendous, tremendous confidence going forward. And with that, I'd like to thank all of you very, very much and look forward to welcoming you all in either the Middle East, Asia or the Pacific. Thank you so much.

Okay. I think we will start again with the strategy. What do you think? Let's do it again to just make sure you got it. Okay. So we'll stop for a break for lunch. So we need to be here at 14:45 sharp so that we can keep up with the people that connect to this presentation. There will be, going outside, 2 elevators which are reserved to go to the 23rd floor, and so people will be waiting for you to help you. We say 2:30, so okay. As PM&E was very efficient, we've been gaining time. And so we've been thinking out of that some. So 2:30, not 2:45. Thank you. [Break]

You pick it up, please. Again, thank you. I hope you had a good lunch. Sorry for those of you listening to us on Zoom, lunch was good. It was actually good and outside and congrats to [indiscernible] the caterer, I think the food was exceptional and very diverse. So we're back. We're back with something rather different. I don't mean better, I really do. I mean, different in nature, in scope, in growth and in different facts from what we just heard from Jean-Jacques a bit earlier, and I didn't have the time to do it. So Jean-Jacques, Duncan, Patrick, well done. And I heard from many that you are extremely consistent, coherent in between the 3 of you in terms of where you're going, how to get there and what you need to accomplish. Don't want to forget, Alix and Brune. It's -- I won't go back because I'm going to be going too deeply with each of you. But thank you for what you presented. And I was making a remark to one or two investors, which is interesting somebody came to see me and said, Sebastien, I don't know you were that committed to Japan. And you heard Duncan in between the lines telling you that he does intend to double up the Japanese leadership penetration of Accor, which he will, and we know exactly how. And the reason why I bring it up is because you need to see how intertwined, interconnected is Accor's ability to develop in Japan when it correlates to ESG. Japanese pension firm are extremely picky when it comes to biodiversity, water reduction, food waste, carbon. In part of hotel groups, they will give their real estate, too. And one of the reason why Duncan is being confident in telling you we're going to make a big push in Japan is precisely because they know they've seen, they've measured the level of commitment that we're making on ESG, which Brune said it also lightly, which is unparalleled to the same level of commitment to some other hotel operators. So it goes hand to hand. So let's go rather quickly on Luxury & Lifestyle. That way you don't see my photograph for too long. I'm starting with something which is a bit unconventional because here I am talking about Luxury & Lifestyle and the first slide is middle-class. And I'm doing it on purpose, and I talked about it this morning, so I won't dwell into it too much. But it's very much correlated to any small lifestyle. You might remember, I think it was 7 years ago. And we failed. I've talked to some of you 7 years ago on something, which I called Accor Local. And Accor Local was a very simple idea, was to say it is kind of foolish that we address a 7.8 billion population in the world, but we only cater to 1.5 billion travelers and another 1.5 billion to 2 billion domestic travelers, which means that we leave aside half of the world population who can't afford traveling, who don't have any desire to travel. That's a vast amount of people that you never sell any services to when you happen to be in their home countries. So 7 years ago, I said, can we open the doors, the windows 24/7 of the hotels of Accor to cater for day-to-day services, concierge, dropping a bag or something else. It did not work. Lack of commitment, probably lack of business model and probably difficult to deploy or maybe distraction for hotel managers. It turns out that in 2014, we decided to go into Mama Shelter and to first chip in for 30% of that brand. Why? Because Mama Shelter demonstrated to a set in the country as big as France in terms of mature country in development. In a small neighborhood of Paris, kind of actually the East district called the [indiscernible] Paris, which was kind of a bit less under privileged 20 years ago, less so today. They managed to create a brand, a destination, a new brand. And within 5 years, have 60% of their clients who never slept, never seen a room. But they came to meet somebody, they came to have a drink, they came to share a meal and it was extraordinary because it is absolutely across the entire edge pyramid. You can be a grandfather with the grandchildren, you can be a banker, you can be a lawyer, you can be a student. Absolutely, everybody gathered together in this and 80% of those were local community-driven around that hotel, same neighborhood. So the reason I put that to you is let's not underestimate the size, the strength of the emerging middle-class because those may not be traveling. But those surely, if you do it properly, could be your customers of tomorrow when it comes to the lifestyle, which is, in most cases, affordable segment. So that's what I wanted to share with you. The next slide, I'm a bit anticipating what Gaurav will tell you. By the way, I should have started with this. First, I want to start with something which is totally different. Vivian Zhou, I don't know -- I haven't told you how appreciative I am that you took a flight from Shanghai that you -- some of you don't know, Vivian Zhou, she is heading hospitality at Jin Jiang, which is the largest state-owned company in Shanghai. They have a lot of real estate development, a lot of land bank, a lot of commercial building and a lot of hotels, which is today, by far, the largest Chinese operator. I think it's now 13,000 hotels, but you open next 3,000 a year. So I may have lost it by 1 year. But Vivian is absolutely totally bilingual. She has been -- bilingual Chinese English, not French yet. She's been living in France, looking after Louvre, helping on Radisson. She's being our liaison officer for the last 6 years. And Vivian, thank you so much for making the effort coming here with us. And you know, of course, you happen to be our largest shareholder for a long time and have been committed to Accor in all the good ways. So thank you. I was thinking of you. So if you don't have time to talk to her, it's a bit too late or you do it before you go after Eurostar. Gaurav Bhushan is CEO of Ennismore, you're going to hear from him in a minute. You have Maud Bailly. She's done so many jobs. Gaurav, 25-year veterans at Accor, business school, but started as a beverage waiter and then scaled up all the way to different regions, different -- and he's going to talk about it. Maud did not start as beverage waiter. But as the train station operator and then French government and Maud is spearheading Sofitel and MGallery and EMBLEMS. Huge challenge but a super good one for you because you're going to crack it as you did with Southern Europe, which was a splendid execution. Mark Willis, we inherited from the acquisition of Mövenpick. Mark has been -- no, of course, it is. Why not, why not, well, defend yourself. You are going to have the microphone in a minute. I meant it. He was the CEO of Mövenpick for God sake. So long-term veterans. Knows deeply Middle East. Regionally he has been based for 20 years and accepted to move away from being heading Middle East for Accor and Africa and accepted another big challenge, which is brand incarnation and brand CEO on Fairmont globally. So you're going to hear from him. So that's on our 3 team members and you have all the team members here, which I hope you had a chance to meet. You have Agnes, heading Development, Kamal, General Corporate Secretary; Johny Zakhem, as CFO, Omer Acar as a newcomer for heading Orient Express and Raffles, and I'm probably missing some others. Go back to this because it is very close to my heart and probably explains quite a bit about what we went through. I told you Mama Shelter 2014, we feel there is something we've missed, which is that local community attraction. And founder-led brand, new design, a bit more daring, stronger concept, something that which is far away from being commoditized and very difficult to replicate if you're a large organization. Then smells good. So we go 30%, 49%, 60%, then 100% over the years. 2 years after, we have another gentleman called Christoph Hoffmann, way different geographies. You're talking Austria, Germany, Switzerland, called 25hours. Exact same principle of Mama Shelter, 2 notches above. He is German-Swiss. He is even more unique than the Trigano. He goes probably of space, much more attached to design. And very stringent on this concept, 25hours, same principle, 30%, 49% all the way through. Banyan Tree, KP Ho, extraordinary gentlemen based out of Bangkok and lives in Singapore, top establishment of Bangkok in Singapore, well-being, wellness. Except this one, we never managed to seduce them for more than 5% and 10% on the convertible. So it's a partner's brand, but we never acquired the majority. Rixos, Turkish entrepreneur, super strong, super smart, super fast, understand the entire Eastern region of Europe, including Russia, Kazakhstan, all the stan countries and, of course, Turkey. Great all-inclusive operator funders, super strong brand and the best money machine in terms of margin. There, same, 30%, 49%, 70%, we still have 70%. He has 30% left. Great partners of ours. Very close to Gaurav and myself. 21c. Laura Lee, out of out of Kentucky, museum brands, a bit more difficult to scale. Then sbe, Sam Nazarian, Delano, SLS, Mondrian in 2018. And then Sharan Pasricha, Hoxton knocked on the door. The reason why I talked to you about it, it is 8 years of conviction, instinct, feeling, commitment and coherence. We knew there was something. We knew we cannot build it on our own. It's impossible when you have a large organization, there's too many chefs in the kitchen. We knew it could only survive if we keep the brand founders. None of those people I have talked to you left Accor. They're all there. They sold almost 100%, but they have an unwritten negative right. There is no hotel of any brand they founded to be open without them blessing it ahead of time. They won't because they know better, because they incarnated the brand. And then decided it was in so many jurisdictions, 30 countries, why don't we make it one scalable platform where we have the synergies of what clients don't see, which is called back of the house, which includes social media and marketing and sales and distribution. We've done that in 2021. It took us 1.5 years. We made the decision in end of '19, 18 months after because it was super complex, legal, accounting, socially to put 30 countries under 1 U.K. hat, which you have Gaurav and Sharan being co-CEOs. It is a very powerful country, which led into a very good success story. You know and we've done -- we had somebody else enter in last year actually for 10.7% on an enterprise value of EUR 2 billion, equity value EUR 1.7 billion, well in excess of what Accor paid for when you assemble everything. They've accepted to pay 40x trailing EBITDA 18x forward EBITDA. And believe me, if we were to do the same transaction today, it will be the same 40x trailing 18x forward. This company is growing extraordinarily fast and it's creating a lot of, actually, seduceness in front of the owners. And again, I won't get privy, but I guess we provided you a number here, which you haven't seen as of yet is the EBITDA CAGR for Ennismore, which is 20% plus per annum, far more than the 9% or 12% you have for the group at large, of course, included in the 9% to 12%. So don't add it up. On the luxury side, which is a different story. And you'll see different personalities giving you different stories, but with the same incarnation or at least the same strength. Remember, we talked about the EUR 9 trillion travel and tourism market. Here is kind of a different KPIs. It's coming from Bain and Altagamma. It's EUR 1.4 billion in terms of spending in the luxury space in the world. What's intriguing about it is the vast majority of it is Vuitton, Hermes, Chanel bags and many other things, shoes, which is a 50% you're seeing here, growing at 6.10%, half of what people spend happens to be material goods. And then you have, on the other side, anything which is furniture, design, homeware, fine arts. This is 30% and growing at 5% to 9%. What's so interesting here, even though it is the smallest piece of this, which is 20%. Anything which is experienced, so nonmaterial grows above 15%, the last 5 years and the next 20 years. And you find here dining, entertainment and transport and hospitality, which is why we invaded that space some time ago because it is a very fast-growing space with the highest dollar at stake per room. The one thing which is on the list here, you have -- since I talked to you about the emerging middle class here, you have the high-net-worth individuals. Definition is rather simple. Anybody who has over $1 million in his bank account as free cash, which is not part of his real estate holdings or salary, which is a spare cash is claimed to be a high-net-worth individual. There is 70 million of those people in the world. That was 40 million only 5 years ago, and you will be over 100 million in 5 years from today. That's clearly the Orient Express customers. If you want to go above $30 million, if you want to know the number because it's also interesting, I don't know whether you can guess, above $30 million ultra-high-net-worth, 600,000 people, far less than the 70 million I told you here. Here, you have the Luxury & Lifestyle portfolio backhaul. We put the 4 pillars, which we're going to talk about, Raffles, Orient Express, Fairmont, Mantis, Sofitel and of course, MGallery and then the 17 brands of Ennismore. You see the 25, we did not break down for our peers because we don't know exactly where they put all-inclusive resorts. Luxury is not -- hasn't been shown as such. But it is, by far, the greatest amount of brands and portfolio size existing on the planet under the same roof. That one is very, very close to what I wanted to say to you today because that occurred to me very recently. And you know I'm spending vast amount of time on trying to understand better the world of lifestyle, the world of luxury because it is not inherent to our core heritage, realized, which we should have known a long time ago, which we should have extracted value from we haven't done so far. There is 7 brands on the planet who can celebrate being over 100 years old. Rightly so, you had our dear friend JJ talk to you about Pullman, the oldest brand in hospitality. But think about it. Accor owns 4 of the 7 over 100 years old brand. Orient Express, 1883, by far, probably the broadest brand in terms of transport, literature, movie, perfume, Addeco, [indiscernible], mahogany, very large brand, but always at the upper level. Raffles clearly colonial origin in Singapore in Asia, probably the one which is the most admired in terms of history. And then you see Fairmont, 1907 in San Francisco. I can guarantee you if we were to pay attention to only the archives of the last 140 years of those brands, you will find and we already started 4 months ago, all different important people of the world being Nobelist prizes, being politician, being music, being whomever you want has been at one of those brands for 5 minutes or for a week. All those time events exist. That is immense value that you can never extract from the brand got created in 1945. And it's only the beginning of it, and this is how you shine is respect your history, but give it to somebody else's hand. And I -- just as an anecdote, if you haven't gone, please go to the Dior Museum of New Montana. It's only 20 minutes. You go there and you have the last 60 years of Christian Dior legacy. You see all different dresses. You see people from Giancarlo Ferre (sic) [ Gianfranco Ferre ] to John Galliano to Maria Grazia. Some of those guys are very different in nature. When you walk through, even though it's different hands, some more audacious than others, the thread is still there. The elegance is still there. It's remarkable to understand how to drive value by respecting the heritage of that brand. This is the portfolio. There is 500 rooms -- 500 hotels, which you know. One thing interesting here is the size of the pipeline. It is 45%, probably 50% as we speak as of last night of pipeline compared to this network, which is by far the best in the industry, including higher than others, very, very strong in terms of brand appetite and brand owners demand. So you see the different pipeline compared to the network. The one thing we need to attack, which is probably the most difficult challenge by far is America. Americas, this is the ground of Fairmont certainly when it comes to North America with Canada and America. We probably need to be better than 10% of the pipeline -- of the overall pipeline being Americas, but it is the most challenged and competitive market by far. But there is a place. There is a place for Sofitel, there's certainly a place for some of the lifestyle brand in which we're already very strong in Americas. So that's where we are on the pipeline. And on the brand organization, I just talked to you a minute about it, and I won't dwell into this one because I think I want each of you to talk about your brand value, brand concept and who we are. The last slide for me is all about entrepreneurship. You will only work if the people in the team, wherever they are, it could be, again, the CFO function, the talent and culture function, if we have somebody who breathes the brand, who is proud about the brand who wants to dive into the history, who wants to talk about it a bit like I could or should, this is a success. Any brands has a face behind it. You can talk about any luxury brand called the Hermes family, called Kering family, Pinault, there's always a family. They are either man or woman. If you don't have that -- and that incarnation could change, thank God because it happens to be the case in all the artistic director of so many brand value. They never diminish the brand. You own your caretaker during the time you host it. So that's where we are with entrepreneurs. Some of those should be totally autonomous; operations, marketing, product, which is brand content, brand promise, brand fulfillment, TNC, they decide everything. Anything which is on the shared back-of-the-house expertise, finance, legal, sales, commercial should be driven centrally to massify when you're selling New York as a destination, Paris as a destination. You know your group or your accounts manager will look to go in between a Sofitel or Fairmont or MGallery in terms of price point. That's as simple as it is. Now it's a question of actually delivering. Well, with this, I give the microphone and I will take his seat. This is a hot seat. We're all switching with Mr. Mark Willis. [Presentation]

It's such an emotional movie when you see the history of the brand, just amazing to see. Great to be with you today to paint a picture of Fairmont where we come from. Obviously, the brand has got a lot of history where we are today and indeed what the future is going to hold for us. It truly is an iconic brand, and I don't say that lightly. It's a place where over the years history has definitely been made. Ultimate host, a pioneer of sustainability, a brand with a real legacy. It's both elegant and timeless and it really has some landmark hotels, as you're going to see. You can see here from the time line -- I'm not going to go through everything. Some of the points I touched on in the video that you've just seen -- first Fairmont in 1907, San Francisco; a UN Charter that was signed in '45 at the very same hotel; the infamous Black and White Ball at The Plaza in '66; and John Lennon writing Give Peace a Chance in '69; first hotel to sign a sustainable charter -- or mandate in 1990. I just wanted to mention there for reference, 2006, the merger with Raffles and Swissôtel and FRHI being born; and some 10 years later, Accor acquiring. From a global footprint perspective, it's an interesting one to see, Sébastien mentioned, the U.S. You can see here, 50% of the operational hotels are in America and Canada; and the remainder, obviously, rest of world. But a huge amount of the development, some 70% is rest of world as we open up Fairmont in 8 new countries; clearly, a luxury brand with a great footprint but a real room to grow and develop as we move forward. Some key facts about the brand, 1/3 of the portfolio of resorts golf plays a key part at Fairmont, which I'm going to show you. We have 15 operational open residences and 21 in the pipeline and are seen very much as a market leader within that segment. Our MICE segment is also 30% of revenue, which is extremely strong. Another key factor, 1/3 of the portfolio is currently under renovation. This is a key point as we've come out of COVID and owners see the opportunities of investing into the brand and indeed the ROI that it brings. I mentioned iconic hotels, and you can see it from the video. There are some big ones: L.A. Century Plaza needs absolutely no introduction; The Savoy with its glittering history; from The Plaza New York to Peace Hotel in Shanghai. But it's not all history. It's not all heritage for Fairmont, no more so than if you look at Fairmont in Doha, which obviously opened just before the World Cup. This is going to be one of the most photographed hotels in the world, for sure. We also have a wonderful connection of châteaux, not least in Canada, of course, from Frontenac to Laurier, some really, really iconic hotels in this collection. Banff Springs, Lake Louis, the absolute essence of luxury, really wonderful, wonderful destinations. To the resorts, as mentioned, 1/3 of the portfolio, it's a segment of the business where we have a truly global footprint from Mexico to Maldives, award-winning luxury locations across the world and, again, a huge opportunity to grow here with the portfolio that we have, which is really well recognized. Just touching on golf. It's synonymous with Fairmont. We have 16 golf resorts globally; 4 currently in the pipeline, another 4 under discussion from Scottsdale in the U.S., Marrakech in Morocco, to Jasper in Canada. Some big golf resorts out there and, again, as I mentioned, more to come. Indeed, we're also present in the Home of Golf, with the Fairmont St Andrews in Scotland. From a restaurant perspective, obviously, we have a great opportunity to leverage the wonderful brands within Ennismore as part of Carte Blanche and Paris Society. We also have a wonderful portfolio of restaurants. The Savoy Grill, which needs absolutely no introduction whatsoever; Haerlin, which is a 2-star Michelin in the center of Hamburg, a wonderfully elegant restaurant. If you get the chance to go, you should definitely go; if you can get a table, that is. We have a 3-star Michelin restaurant in Addison at Grand Del Mar, again, an amazing experience to go and dine there; and also some wonderful brand association with brands such as Nobu and others. I wanted to just mention Little Miss India, recognized as one of the top restaurants in Dubai, in what is an absolute food and beverage crazy, so wonderful to see. What are we looking to do with Fairmont? One thing is for sure, we need to preserve where we sit from an iconic perspective. It's a heritage brand. Of course, it is. We want to look forward. We want to push Fairmont to the forefront of the luxury segment, but we mustn't forget the past of the brand, that is for sure. From a strategic-level perspective, obviously, we have the opportunity to develop high fee per key in key destinations where the brand is not currently 90 operational hotels, so plenty of scope to grow, as I've already mentioned. Introducing brand clarity and absolute consistency as we move forward: new brand manifesto, new brand partners, new brand ambassadors in order to reposition Fairmont from a social media perspective globally. Service and culture at Fairmont, absolutely high today on all the indicators that you see. Fairmont sits very, very well versus its competition. This is something that we're absolutely going to work on and make better as we move forward. From an ESG perspective, this is a key topic for Fairmont. We have the opportunity to make it an absolute market leader, a segment leader, at the forefront of what we're doing from a decision perspective. And also from a communication perspective. I've painted a very brief overview of where we sit today. I would add to that, we have a full luxury team in place based in Dubai, Toronto, Singapore. And over the next 12, 36 months, you look -- Fairmont 2.0, change the look and feel, take us forward in a positive manner, our communication, various design elements, architectural elements and also work a lot on the brand markers that we have in place currently. The next 36 to 48 months total brand clarity whereafter; exceeding guest expectations. Easy to say, but of course, difficult to do. No brand detractors, and we're in a very good situation with Fairmont today. I mentioned that 1/3 of the portfolio is currently under renovation. Out of the 90 hotels, it's a big figure post-COVID. And align brand consistency, which is absolutely paramount. Indeed, if it's not luxury, it's definitely not a Fairmont. The development principles: key destinations, major cities; no tertiary locations, an absolute must, as we redefine where we open hotels and where we grow Fairmont; inspiring luxury architecture and interior design, a lot of work going into this element of the business at the moment as we try and redefine where we take the brand and how it looks and feels; management contracts only, absolutely no franchise; defined and clear takeover practices, only branding the hotel when it's fully complete; maintain and grow our leadership position in both MICE, golf and residential; put a lot of effort into food and beverage, which, as I mentioned, in collaboration with Ennismore, leveraging on that luxury and lifestyle infrastructure, we really have the opportunity to grow that area of the business; and also grow with regards to wellness and fitness. We have 34 hotels to open in the next 36 months, and that is what we have on the table currently. Some of that is a backlog, of course, as we've come through COVID, as hotels didn't open globally, especially in Asia, and some locations, Africa, Middle East. But you can see it's a really, really strong portfolio of hotels to open. And this 34 is without things that will come as we move forward over the coming years. Since the announcement was made for Fairmont and the luxury and lifestyle infrastructure, like all my colleagues in similar positions, you spend a lot of your time involved in business development and that element of the business. I don't think we've ever seen any such interest as we've seen since the announcement with regards to Fairmont. It's been exceptional. Third-parties, owners, proactively coming to us seeking out the brand. And of course, not everything is for Fairmont. That is for sure. But the opportunities to move ahead and grow positively are very, very good indeed. I've listed out there some key locations that we've got coming: the Americas, new Orleans, San Diego, Miami is also under discussion; Europe, Prague; a great pipeline in Middle East with Riyadh, Cairo, Jeddah, obviously, the brand is extremely strong in that location; Africa, Djibouti and Abuja, which is a key destination if you want to do business on the continent, which is obviously in Nigeria. India is a key one for us. We've mentioned India a number of times through the presentation today. We're currently operating one of the most recognized hotels in the country in Jaipur. And we have great growth there underway, Mumbai, Udaipur and, of course, Agra, the site of the Taj Mahal, which is super critical for us. Asia, key destinations, we talked about Japan. And we have a wonderful Fairmont, which will open in 2025 in Tokyo; and a recently signed 500-bedrooms hotel in Bangkok to come, which again is a takeover. Continued wonderful growth in China and Australia. And that paints a very quick and brief overview of Fairmont. Thank you so much for your time. Thank you.

Maud, you don't need any introduction, do you, so why don't you go ahead? The floor is yours, Maud.

Good afternoon, good morning, good evening, everyone. My name is Maud Bailly. I've been with Accor Executive Committee for now 6 years. I've joined the group as Chief Digital Officer. Now it's you, wonderful Alix. And then in 2020, at the heart of COVID crisis, I took over Southern Europe hub, in charge of 1,900 hotels in 7 countries. It's been quite a massive resilience journey, full of reinvention and passion. But according to one of my favorite quotes, "Life is not about waiting for the storm to pass. It's about learning to dance in the rain." When Sébastien offered me the opportunity to lead the MGallery, EMBLEMS and Sofitel brands, I -- as a global CEO, I immediately said yes. First of all, because I love these brands, and I love the idea of reigniting them. They were a bit of lost in this huge organization. Second, having a brand-led organization allows you to become the guardian of the brands. You are in charge of the entirety of the guest journey in a full entrepreneurial mindset. And three, I said yes because small is beautiful. And having only 250 hotels was allowing me to get into the nitty-gritty of each hotel, each ownership, and to travel everywhere with my wonderful teams to see each product and to understand where our beautiful brands stand. Talking about the brands. They are addressing very different markets and owners' needs: on the one hand, Sofitel, a signature brand, with very well-defined standards; and on the other hand, MGallery and EMBLEMS, 2 collection brands belonging to a more flexible boutique hotel vertical. I'd like to share with you where we are today, but above all, where we want to go. Looking at Sofitel. Sofitel covers, as of today, a network of 120 hotels. It's been the first luxury brand incarnating hospitality à la française. And we will celebrate its 60th anniversary next year. Sofitel benefits from a very strong presence in many key destinations, with money can't buy locations attracting both leisure and business travelers. And it does also benefit from a strong awareness, being ranked in the top 3 brands in France, of course, but also Brazil and Australia; and ranked in the top 10 brands in the U.K., U.S., Saudi Arabia; and China, Gary, which boosts alone 21 beautiful Sofitels. Within the Sofitel brand, you will find different hotel categories, out of which Sofitel Legend is, without contest, the most luxurious one. This legendary landmarks won more than 200 awards in 2022 alone. And Sofitel Legend has been voted as the sixth best hotel brand of the world by Travel + Leisure. Agatha Christie wrote Death on the Nile in Sofitel Legend Old Cataract. Sofitel Legend Metropole has been the first 5-star hotel of Hanoi and the first place where motion pictures were projected in Indochina. We just opened last year, Sofitel Legend Casco Viejo in Panama City, in a unique United Nations World Heritage site. Sofitel encompasses also urban hotels, you may know, in Dubai, Sydney, London St James and its Michelin-starred restaurant. Sofitel Mexico City, Sofitel Washington, D.C. being both ranked #1 in town. And our last born in Europe, Sofitel Barcelona Skipper, embodying the next new generation of Sofitel with its fusion tapas F&B concept and its panoramic rooftop. If you want to escape from big cities, you can also enjoy one of our 30 Sofitel resorts all around the world. Moving now to our collection brands, starting with MGallery. Created only 15 years ago, in 2008, MGallery already covers a network of 121 boutique hotels. Especially after COVID, people have been looking more than ever for intimacy. MGallery meets the deep need for charming, homey feeling, human-size boutique hotel, not more than 150 keys; a distinct design for each hotel, becoming, in itself, a unique destination. MGallery benefits from strong brand appeal: for our guests, mostly leisure; and from our owners, with already 40 MGallery in our pipeline. Here is a glimpse of some MGallery character-full places. So Porter House, which has opened in Sydney this year used to be a tannery. Therefore, the minute you get into this MGallery, you will discover a remarkable work around [ leisure ]. DongFeng Yun Mi'Le in China just won the design award of Prix Versailles for its pottery-shaped buildings as a tribute to the art of Chinese porcelain. And the Hôtel de la Cité in Carcassonne has been built on the former episcopal palace. So depending on your stay with us, you will sleep in a former church, a former tannery, a former police station, a town hall, a coffee or a tea house. EMBLEMS, which is a new brand, embodies the same ethos of singular character, bringing the boutique hotel experience to a higher level, with more handpicked locations and more exclusive venues. It differs by MGallery -- from MGallery by offering mostly suites and villas. If you look at these EMBLEMS on the screen, we signed these EMBLEMS in Guiyang in China. These EMBLEMS, which used to be a private residence, will be exclusively designed around 64 suites. With 3 distinctive categories: heritage, signature or retreat. EMBLEMS stands for our highest luxury collection in a very interesting [ launch contest ], requesting a lot of discipline and consistency. I'm happy, by the way, to share with you the first 5 EMBLEMS we signed: 2 in China, 1 in Philippines, 1 in Vietnam and 1 we just signed this month in North America in the Rocky Mountains. This is only the beginning, and I'm happy to announce to you that we will be able to announce very soon the first EMBLEMS in Europe. Bringing all these brands together, our global P&L covers a network of 243 hotels, representing 44,000 rooms. Asia Pacific and Greater China are today almost half of my network and also our top region in development. Middle East and Africa shows a growing interest in our brands with 19% of my pipeline. Americas, as you said, Sébastien, remains by far our smallest market, but it can also be an amazing development playfield for these brands. To support our hotel performance and growth, we've been designing since the 1st of Jan from scratch a brand-led organization, gathering all the function within one business entity for more focus and more clarity. It's been quite a unique journey. We were literally 26 in Jan, and we went up to 100 people, each of them carefully chosen for the hard and soft skills, while we were starting traveling everywhere with my teams. This organization achieves the strength of global scale, delivering the vision and the relevance of regional expertise with many local relays. And because every great brand relies on a strong culture, this organization will also promote 7 strong values: passion and Pride for our guests and for our brands and for our people; excellence in everything, revenue maximization, [ LGI ], EPS, EBITDA, business performance, quality and service because luxury is, above all, an attitude; empowerment with a strong entrepreneurial mindset, revealing people's full potential, allowing a bespoke and bold way of doing business; proximity and solidarity, a flat organization, fewer layers, constant dialogue with our GMs; trust and transparency to build long-term relationships with our owners and talent. On this foundation, we want to bring these brands into a new dimension, starting with Sofitel, which will differentiate itself in the specific positioning of the French zest for life i.e., a quiet luxury, combining quality, generosity and affordability, in a very recognizable signature around 4 brand pillars. The first one is about being French, not being French meaning being a [ Hugo ], but being French as a certain manner of embracing life in all lit dimensions, with joy, freedom, a touch of impertinence, just like Voltaire's quote, "I have decided to be happy because it's good for my health," [Foreign Language] i.e., the French art of good living, combining effortless chic and deliberate idealism, which will also lead to a very specific service culture for Sofitel, with the same touch of freedom of creativity, of panache, greatly valuing emotional intelligence. This is what we call at Sofitel [Foreign Language]. All the little attentions and gestures designed to give our guests a special and a certain emotion. We are currently working on a unique training program to develop this Sofitel touch everywhere and make guests come back and choose us for this service, too. Sofitel promises about also the cultural link, symbolized in its logo: 2 interlocking rings, reflecting the encounter of French culture and the local one. This is why you will find Mexican culture artifacts in Sofitel Mexico City or pieces of art inspired by Gaudi in Sofitel Barcelona. All our Sofitel will embody this union of 2 cultures, proving that there are also places meant for their neighbors. Last, but not least, [Foreign Language], which is last or our fourth brand marker. We want Sofitel to lead the way of sustainable luxury. With a strong CSR commitment deeply embedded into the brand around plastic, carbon, food waste, eco-certification, diversity. We will, therefore, scale up great practices such as in Sofitel Dubai The Obelisk who have their own glass water bottle recycling factory in the basement; or Sofitel Legend Amsterdam, The Grand, already eco-certified at gold level by Green Key. So in a nutshell, Sofitel shall stand for the French zest for life, elevating hotel with a genuine soul and the positive social impact. Talking now about the MGallery ambition. It will rely on 3 complementary pillars. First of all, we want to ensure that for each MGallery, there is a meaningful story, what we call a memorable moment, scripted by our teams for our guests to create more stickiness and business. For instance, a yoga class on the rooftop of MGallery Pompeii in front of the Vesuvius volcano or a breakfast at the top of a Holy Mountain at sunrise at the MGallery Legacy Yen Tu in Vietnam. Second, in line with this collection spirit, we will create a strong community of passionate MGallery collectors. To reward our repeating guests and make them feel excited about discovering the next MGallery. And to increase their sense of belonging. Thirdly, because MGallery hotels owe everything to their local roots, they need to give back. Therefore, we will make sure that all our MGallery will specifically support local craftsmanship associations, festivals, everything that feeds and sustain their local anchorage. For all my 3 brands to maximize their equity and business performance, we'll activate 4 levers. The first one, of course, is about people, to train, to retain, to attract the best profile around a strong culture. The second is about elevating the brand, new brand platform, new website, preparing the 60th anniversary, new campaigns; and for EMBLEMS, ensuring a successful launch of a new, clear, perfectly understood brand. Elevating our brand promise means also elevating the guest experience, starting by being obsessed with quality. Quality of the service, of course, but quality of the products, too. By cleaning the network of what we call detractors, i.e., hotels in huge need for renovation, with 3 very clear scenarios: scenario 1, getting fully refurbished to deserve the brand; scenario 2, getting rebranded; scenario 3, exiting the network, period. This zero-compromise policy will be the key to our credibility over the long term. We'll also develop our own F&B and entertainment and wellness concept and revamp our partnership and collab strategy. Our last lever is obviously about development driven by 4 strong common principles: conquer new destination with a real flagship strategy to prove, to showcase for real, our luxury know-how; focus on the most contributing leads per key, putting value before volume; boost the pipeline with results and branded residences everywhere; and last, but not least, embed CSR in each new lead through sustainable standards or even eco-regenerative buildings project. Beyond these common principles, each brand will also follow its own development strategy. We are facing a momentum. Since the beginning of the year, we are pushing hard Sofitel development in Europe. And I'm happy to share with you the fact that we already signed a beautiful Sofitel on the Adriatic Coast. And we received already 5 LOIs, representing 1,000 rooms for Sofitel only in Europe. We'll capitalize on regions with flagship, such as Mexico, Vietnam, Thailand, Middle East, China. And we'll go to booming countries, obviously, such as India, Saudi and Turkey. Sofitel Legend will help us to target high-contributing properties, and we see the momentum to the benefit of a brand-led organization with already 5 leads of Sofitel Legend. For MGallery, a very fast-growing market with 40 hotels in the next 3 years. We will target Southern Europe, especially Spain, Greece, Portugal, Israel, but also China, South and Central America and U.S.A., which could be an amazing market for a boutique hotel like MGallery. EMBLEMS, we will be extremely selective with stop venues in primary or key -- primary markets or key cities and iconic resort destination, with a global objective of 60 EMBLEMS by 2032. As of today, our pipeline represents for these 3 brands 77 hotels and 14,000 rooms, i.e., 1/3 of our current network with the following regional breakdown: 23 in Europe and North Africa, 13 in Middle East, 21 in Asia Pacific, 17 in People's Republic of China and only 3 in Americas for now. Last, but not least, we shall achieve this ambition in very clear time line. Today, we are finalizing our organization, building the culture and service signature, revamping our brand platforms. Within the year, we should have made great progress on cleaning the network, launched our new brand campaigns, gained in quality of all our leads and boosted social visibility on social media. Within 3 years, we want to achieve a super consistent network of only great, quality hotels supported by our service, which should become our signature, attracting a renewed clientele in all eco-certified hotels. As a conclusion, I would like to say that my wonderful teams and I are taking on this unique journey with great lucidity, determination, and absolute passion, with one quote of Pierre Corneille, a French playwright, again, guiding us, "To those who know how to love, nothing is impossible." Thank you.

Well, good afternoon, everyone. I'm a bit embarrassed because I don't have brands with 100-year histories. But we have some pretty fun brands, pretty exciting brands, and they make quite a bit of money. So I'm pleased to be here, none the same. So I wanted to share a bit about Ennismore with you. You've seen some information come through, and Sébastien talked a lot about that. So I'm not going to get into repeating some of what he said. But it's very important to understand how Ennismore came about. It's a vision, as Sébastien said, that started 8 years ago and accelerated over COVID. But these words here are extremely important: the entrepreneurial and founder-built nature of the brands is key to our success. So before I launch into telling you a lot more about Ennismore, just a couple of quick words about myself. As Sébastien said, I'm the old guy in the room. I've been around with Accor a long time. No one else gave me a job, so I'm still here. But I've been around -- I started my career in Accor in Australia. I grew up in India, born and brought up in India, grew up there; moved to Australia, spent -- started my career with Accor in Australia, spent over 10 years there; moved to Singapore and then spent another decade in Singapore; and now most recently, to London; and now really shuttling between Europe and the Middle East, which forms the biggest part of our business. So I've been all over, in many exciting and different roles, but most of my career has been focused on building hotels, investing in hotels and developing brands. And I was fortunate enough to come through and work with Sébastien on the investment and the acquisition of a lot of these hotels, a lot of these brands, which now form part of Ennismore. So we started our journey in 2014 in lifestyle and leisure. In fact, what's not here is that we acquired Rixos in 2017. It formed -- came into Ennismore in 2022. But in fact, the journey with Rixos started with our partner Fettah in 2017. But we began this journey, investing in these brands, really trying to understand what made them different, what made them take -- why were these hotels so successful? Why were they delivering a superior financial performance to big brands? And there was a lot of key learnings out of that. One, the programming and focus on product and design was absolutely fundamental to the success of these hotels. So you have to make sure that the spirit of the brand DNA lived very strongly in these hotels, no matter there were 2, 5 or 50. And we've tried to set up an organization that replicates that. And two, the embodiment of the founders was crucial to the success, and we talked about how there is a strong creative person behind every brand. It is so true for what we do with Ennismore today. And I'll talk a little bit more about that. But over '21 -- October '21, we started the discussion with our partner, my co-CEO, Sharan, who's an incredible entrepreneur, launched Hoxton and Gleneagles. We started the conversation with him about putting together really an innovative, the largest and the fastest-growing lifestyle-focused hospitality platform. We came together in late 2021, formed what was Ennismore 2.0. And exactly a year later, with the success of everything that we were seeing and how we -- the reaction we got and the growth that we were experiencing, expanded that footprint to incorporate the leisure business with our luxury all-inclusive business, Rixos; launched the all-inclusive collection, which I'll talk a bit more about; and took in Paris Society, which is the most incredible luxury restaurant business which is -- which has huge synergies with what we do in lifestyle and leisure. Today, we have Ennismore, which is fast-growing, innovative. We put 6 companies together from all different parts of the world, brands out of Europe, brands out of the U.S., brands out of the Middle East, brands out of Asia. So it truly is a melting part of brands, of people, highly multicultural. But most importantly, we set up quite a different organization to how Accor was run at that point in time, a brand-led organization. And that was the key to our success in making sure that whilst we were building scale, we were building it with a very focused organization. So for example, a Hoxton organization has dedicated people just doing Hoxton from brand to digital, to design and programming, revenue management operations, end-to-end, they live and breathe their brand. And that has been a key pillar of our success today. Our brand founders, we've all talked a lot about that today. But really, this is fundamental to our success because all our brand founders have come with us. They've come with us for the journey and they're actively involved in the development of our brands, of our product, of our network. This is a huge advantage, and it's key for our development. It gives us a good leg up. Our owners love interacting with our owners -- with our brand founders. They love the fact that there's a soul behind the DNA of the brand, which is still existing. So engaging with these brand founders -- and I spend a big chunk of my time making sure that they have the resources they need, they have the footprint they need, the teams have the resources at their disposal, and they are thriving under the Ennismore platform, and that shows, quite frankly, in our numbers and our pace of growth. We see ourselves as an ecosystem of brands and services. You will notice here we don't talk about being a hotel company, and hopefully, you'll see why, because our big focus is on curating everything that happens outside the hotel room, in the room. The rooms business, we know how to do that, and I think we do that pretty well. But the delta is, everything that is happening outside the room and creating revenue streams that happened outside the room, that creates the delta in between what we do versus our competitors. And I'll try and show you that in the next few slides. But our brand portfolio is what sets us apart from our competitors. I do believe we have an unrivaled platform in the lifestyle and leisure space. No one has been able to create in a short period of time the brand platform we have. We have very 3 clear lines of business. We have lifestyle hotels with iconic brands, whether it's Mama Shelter, Hoxton, 25hours, Delano, SLS; really, really great set of brands and a dedicated co-working brand, which is working super well called Working From_. And we have our resorts business driven by the Rixos all-inclusive business. And we launched the all-inclusive collection, which is 8 brands further of Accor and Ennismore, which leverage off the expertise of the Rixos all-inclusive platform. And I'll show you the results that, that platform is now showing. Paris Society. You were in a Paris Society venue last night, Mun, which is one of the brands represented here. And Paris Society is a collection of the most iconic venues you can find in Paris certainly and now in most parts of the world. But if you were to pick the top 20 restaurant tariffs, 15 of them would be Paris Society restaurants. And our ambition is to take this business global. So it's not just an interesting and fast-growing and great business today, but it creates a massive amount of content and creativity and credibility for our luxury and lifestyle hotels as we start to build our business. So as I said, that's the snapshot of the business today: the lifestyle collective, 100 hotels, and I'll talk about the pipeline a bit more; the immersive resorts; and Paris Society. So as I mentioned, our ambition is to grow with Paris Society. We're taking all these brands out of Paris, taking them to L.A., taking them to Miami, taking them to New York, to Dubai. We're starting to open venues in our hotels, independent venues. So the idea is to really curate a collection of iconic venues all over the world and build these brands worldwide. And we are starting to get real traction. As you can see, we have a very strong pipeline now building up in different parts of the world in key lifestyle and leisure destinations. So the Ennismore ecosystem is a little bit unique. I'll pause here and talk about that because this is the crux of how we run our business and how we create a delta in our revenue, and which is resulting in our fee per key compared to our competitors. So we do our hotels and resorts, but we also do restaurants, we do membership, we do branded residential, co-working. So we're trying to program a lot more in the same space than a traditional hotel. And you will see that come through the numbers. So that top part is the business lines of Ennismore, and the bottom is all the studios and all the platforms that support the growth and the operation of the various business lines. And these platforms are critical to our success. 1/3 of the entire Ennismore team is totally focused on creating content, whether it's digital content, design, programming, marketing, F&B. So it's a complete and 100% focus on creating the best product for that location, and that drives the success in what we do in our bars and restaurants, in our entertainment venues, in our clubs and in our hotels. Talking about ESG for a second because this is not just talking the talk, this is a serious business for us because our brands are young brands. They attract a very, very specific clientele. And the sustainability piece is crucial to our customers. They identify with it. They resonate with it. So brands like Hoxton, brands like Mama Shelter, brands like 25hours in particular, the European brands, have actually embodied ESG pillars in their DNA from the very beginning, 10 years ago, before people were really talking in a meaningful way about sustainability. So I believe we are ahead of the curve. We now want to bring in the strong DNA of ESG into all our brands and really focus on this as a key pillar of our brand DNA not because it's -- just because it's the right thing to do, it's also because our customers love it and they identify with what we are doing. So this is a very important piece of the puzzle for us. Talking about our network a little bit more. Here is our network and the pipeline. There's a few elements that I'd like to highlight here and pause here a bit. One, that pipeline -- these numbers are as of the 31st of March, but that pipeline that you see of 24,000 rooms is now up to 29,000 rooms. So in the space of a few months, we've grown that quite substantially. And the pipeline today is 100% of our network. That's our committed pipeline. And obviously, we have good momentum in new signings every day. We've had 50% growth in our pipeline in the last 12 months. That just starts to show you how our owners are reacting to it; the response we've had from our customers, which our owners are looking at very carefully. And that starts to drive a real momentum and a real inertia in our development. And I think will just continue to snowball as we build out our business in other parts of the world. If you look at the Middle East, which is now 40% of our pipeline, almost 40% of our business, a very, very strong pipeline. The pipeline is 100% -- almost 100% of our network. Have a look at Asia. We're just getting started. We've opened our first 3 hotels, but the pipeline is 6,000 rooms versus an operating 1,000 rooms, right? The Americas -- most of the growth in the last few months has actually come from the Americas and the Middle East. The Americas today, which is 25% of the business, 10% of the network because -- they're 10% of the pipeline, sorry, is a bit skewed because of the weight of Middle East. But I can assure you the Americas business is going to grow fast. Our brands are very interesting for the American markets. None of our large competitors in America had a dedicated lifestyle platform with a focus like we do, and we intend to absolutely focus on that American market. Particularly, the Caribbean and the Central American market because of our positioning in the lifestyle and leisure space has a huge, huge scope for growth for us. So altogether, we have a pretty, pretty strong pipeline, a very diversified and global business with great growth potential not just in our home market, which is Europe, but increasingly now in the Middle East, in Asia Pacific and in the U.S. Branded residential is a key additional revenue stream that we're working on. Because our brands resonate so well with our owners, we are now really focusing a lot on developing branded residential next to our hotels. About 1/3 of our entire pipeline has a branded residential component. And this is very interesting because it actually drives not just an additional revenue stream with license fees, which has a very high EBITDA margin. It also helps us curate the entire asset. We populate these villas, these buildings, with our restaurants, our bars, our clubs. And that all creates a community. And it's -- our big focus is creating a community that helps not just creating a great community but it helps our owners and the developers drive a premium of anywhere between 15% to 40% on their sale price per square meter because the buyers want to be in that community. So this is a big focus for us going forward, and we will continue to grow this pipeline. A word on the all-inclusive business, I talked about the fact that we started up and started investing in this business in 2017. Look at the results over the last few years, we've tripled our network and pipeline. We launched the all-inclusive collection last year. In 12 months' time, the non-Rixos branded properties are already 20% of the pipeline. So we're just getting started. This is probably the business with the highest growth potential within everything we're doing in Ennismore. We are seeing amazing growth opportunities. We've started out predominantly as a Middle East and Turkish business. We're now entering Europe. We're now entering Central America. We're about to enter Asia with a large asset. So the focus is to build a global business, which is highly profitable, both for our owners and for us as operators. Our brand network is actually quite unique and gives us a unique space in the lifestyle space. So if you look at this, this is pretty interesting because 45% of our entire revenue from our properties comes from 4 key destinations: London, Paris, Dubai and Miami -- Miami and Bahamas together. This is actually quite interesting because these are the top 4 lifestyle destinations in the world. If you want to be a credible player in the lifestyle business, you need to be visible. And this is where we lead. This is where we're the strongest. We are actually capitalizing on this, increasing our visibility in these markets. And that helps substantially to drive our development in the other markets because these are super-visible global definitions, and it really helps to have a leading position these 4 key markets. As I mentioned, we put together literally the United Nations of lifestyle brands. So we have our brands from all parts of the world. It gives us a very strong global appeal. A brand like Rixos has a very strong global appeal in the GCC and also in the U.K., the U.K. is our #1 market for Rixos, outside of the Middle East; SLS, Mondrian, not surprisingly driving really strong visibility, really strong appeal in the American market; Hoxton in the U.K. and the U.S.; and 25hours and Mama Shelter, super well-known in the European market and now growing global, but really driving strong visibility and a strong client base from the European market. So when you put that picture together, we really have a very diversified customer base, both in demographics, in age, in gender. So we are attracting a very, very interesting and different mix of people, of predominantly people between 25 to 40 years of age that will stay with us, hopefully, for a long time to come and develop that brand loyalty. A bit of a focus on how we've performed over the last few years and where we are heading. This is a very important slide to me because this defines the whole lifestyle business model. And Sébastien talked a bit about it before. But as you will see, 55% or more of our entire revenue comes from the non-rooms business, whether it's F&B, co-working, memberships, digital. So we are driving multiple revenue streams from our business, not just from managing the rooms. And this will grow to over 60% over the next few years as we grow more and more into the different business models that we are working on and curating our properties better in a more effective way. And that, in the essence, defines lifestyle. I mean, anyone can have a nicely designed hotel. Just because you have a colorful hotel doesn't make it lifestyle, in my view. It's how you curate the building, the concepts you put in there, the programming, your delivery of service and the ambience you create that drives your customers. And here, the most important part is, most of this business, the non-rooms business, is local business. It comes from people living around the hotel. Crucial because even if -- if I take the example, over the COVID period, even when the hotels were running 20%, 25%, 30% occupancies, the restaurants and bars were absolutely full because people weren't traveling, but our F&B business was booming. And the F&B business last year, by Q2, had recovered to pre-COVID levels. So we provide a diversified income stream, which is less risky also from an owner -- our owners love the fact that we have a diversified income stream, and half of our revenue is locally generated as opposed to being reliant only on the travelers that are coming and staying in our hotels. This is actually a pretty interesting case study we ran last year. Looking at our Hoxton hotels in London and trying to understand what the lifestyle hotel business, if done well, really delivered for our owners. And this is an interesting case study because we compared all our operating Hoxton hotels versus comparable hotels in and around London in the same area. And you will see the performance metrics of these hotels on 22 actuals versus the comparable hotels of similar size, similar locations, similar growth flow area. So whilst we're doing better on RevPAR, what's interesting is, look at the delta on the F&B revenue, right? It is significantly higher. That then translates into a much better total revenue per available room. And whilst you could argue the margin, the actual operating margin, could be lower, but you don't bang percentages, you bang dollars and euros, and what we are delivering actually is a significantly higher GOP per key compared to a comparable classic hotel because, effectively, in the same box, we're able to create revenue streams that traditional hotels are not able to create. So a lifestyle hotel executed well is, of course, a lot of fun to develop and operate but also delivers a superior return to our owners. And that's a big reason of why our owners are now really coming to us with new projects because they, of course, want to open hotels that are fun and interesting, but they also want to get a better return on capital. So for the same development cost per key, you're getting a much better return on investment for the owner. Looking at our growth over the last few years. We had actually a pretty strong growth period over COVID. We grew almost 10,000 rooms -- or 9,000 rooms from the end of 2019 to '23, consistently opening successively hotels over the last 3 years. And as we sit here, going forward, at 2025, we see a plus-70% growth. You'll recall the pipeline, as I mentioned, is now up to 29,000 rooms. So opening another 20,000 rooms is -- looks pretty good because that pipeline is pretty much committed for us. So we can safely forecast our growth over the coming years. To conclude, I won't go through all of that because honestly, it's -- you can read it all. But there's 2 or 3 key things I want to highlight. Yes, we're growing fast, but we're also growing at a pace which is accretive in terms of our fee per key. You'll notice that our BTI, our management fee per key, is at about EUR 4,000 for operating hotels, but the run rate fee for our pipeline is about EUR 5,000, so substantially higher. So we're not just developing fast-paced growth, we are showing great growth, but in an accretive fee per key, which, of course, will have an incremental positive impact on our EBITDA margin as we move forward and start to build real scale because we're only in the second year of our business. So we have a long way to go. We have an amazing portfolio of brands and we have strong growth to cover. And I've been in this business a long time. As I said, I'm the old guy in the room. I spent my life, most of my career, developing hotels, developing brands. And I can tell you, I have never seen momentum like this. The response from our owners and our partners and our customers has far exceeded my expectations. Because what's very clear is that -- and you can see it clear as day, in my view, our customers are looking for experiences more and more over functionality, very clear. That's an unmistakable trend. Our owners are seeing this trend and are responding to us asking for brands that not just create a point of difference to what's been developed in the past but also gives them a much better bottom line. So we are in the right place at the right time with the right brands, and I think we're just getting warmed up. Thank you.

I guess, Gaurav, you forgot who is the right CEO.

I'm not talking about me. I'm talking about you.

Congrats. And I know Sharan is probably in London, so he may be listening. But I guess you did mention Sharan Pasricha. And I just want to thank him because he's done 2 things for us in 2019. After having set up his own brand organization, of which he controlled 100% of Hoxton and then managed Gleneagles and Maison Estelle and others, it was an enormous risk for him to relinquish control against shares, nonliquid, of a new entity to be set up. He did have an ask, he said, "Sébastien, could we call the entity Ennismore?" And I said, "Why?" It happened, I guess, his family entity for Hoxton was called Ennismore. He said, "Because that way, I believe it's still mine." And of course, I said yes. But that was, what I call, a leap of faith when he accepted. And he wanted no cash. He said, "Sébastien, it's not valuable enough. I'm going to do so much better. I don't want to sell. I just want to partner." And he did, and to my biggest surprise, Sharan and Gaurav, as co-CEOs, are extremely complementary. Gaurav, you probably felt it. He is the developer. He's a financial person. He is super talented in leadership, in management, in assessing risk, in understanding culture. And he's a driving force, and he's accountable; Sharan, product-driven, creative content, programming, design, social network, anything which is not what I've talked to you about, Gaurav. So those 2 together have been -- not only they've never been fighting, but the reason why it's been growing so fast is precisely because they happened to be a duo and are very fine and probably the best one, by far, in the industry. So you've been lying before. It's not because nobody made you an offer that you stayed. You have an offer, but weak, from somebody else. So it's just because you have been extremely loyal to the group. And I think because we've been feeding you with what you wanted with this challenges. So Gaurav, thank you. Thank you for -- Mark, on the -- Mark, we saw the presentation, at least a slide. Sorry, I meant the film. I don't know whether I was alone in the room, but it just hits me the richness, the force of the video on Fairmont is beyond belief. And it gives an impression on me and probably on you and I saw you on stage of humbleness. When I told you you're only a curator and a caretaker, that's exactly who we are vis-a-vis Fairmont. It's a brand which is bigger than life, which we had to respect, which we had to preserve and which we had to enhance, which is very difficult, but you'll do it very finally, Maud, you're perfect for what you want to accomplish. It's another challenge. And once again, you're going to be there. I -- the reason what I wanted to mention, and it's more 2 seconds, sorry, before I go to this. I started this morning telling you what we try to build over 10 years. I'll grant you it's probably taking us 3 years longer than expected myself. That includes 2 years of COVID, but, gosh, it did take a long time. But there's something which has been evident to me, I mentioned to you February 2022, stock price being at EUR 27 and reflecting on why and we can't afford to continue like this. But Turbo as a new organization, at least half of the thinking was Ennismore. Ennismore was 18 months of work between 2019 and closing October '21, 4 months before those source reflections. And by doing Ennismore, we saw the twist. We saw the material difference with 2 co-entrepreneur CEO, putting teams together, brand-led, fighting their own way, being different and delivering much better result than I ever expected myself. This is why we decided to have 2 separate organizations. This is why we decided through Luxury Lifestyle. Luxury & Lifestyle, it's only a replica of Ennismore. That's what it is. It's nothing better. There's nothing coming smart about it. It's just learnings for what we've done well in the past. Which led to -- you saw that slide a bit earlier this morning. You, of course, saw the fee per room. You got another information, which I knew he was giving to you is out of this EUR 3,600, EUR 3,900, he just told you that [ Ennismore ] is above that number at 4,000 feet per room and 5,000 moving forward. Believe me, whether it's [indiscernible] here with Orient Express and Raffle's going to be beating that 5,000 easily, but so would, Mark, and Maud. On this, I just wanted to say one quick word because I didn't have a time to mention you, Gary, Rosen. Gary is the only guy who can obviously preserved his territory, preserved his leadership. Gary Rosen is heading China, Greater China for Accor, joined Accor 5 years ago, Americans speaking, fully Chinese understand the Chinese market inside out. Gary, thanks a lot for having came all over. So he is having 2 father or mother. It happens to be Jean-Jacques and myself. So he's in between the 2 seats. And I think he likes it that way. So on the first line, those numbers have been given to you this morning. The second line is probably the one which is the most striking, I don't know, but it's a different pace of growth. We talked about it. We gave you the 6% for Luxury & Lifestyle, and we're even getting more granular, which is a view, which is a 17% pace of growth for [ Ennismore ], which you have seen, which is 100% of the network, which led to let's say, a conservative 2% to 3% growth for the group. You've seen the RevPAR growth, that's for this year, 15% to 20%. M&F and then promised to you that we won't repeat the mistake we've made last year in '22 to be negative on STO. We knew where we were negative and Patrick talked about it to serve and prepare the rebound. And we don't regret. We regret having surprised you. We don't regret having invested wisely at the time we should have invested which was the first semester of 2022. That was ultra indispensable, which is why we're having RevPAR, which is much greater than some of our competitors because we knew when and how to invest at the time. But we could continue doing it while becoming and remaining positive. And you saw the EUR 920 million EUR 960 million and we're being granular, again, on purpose, in the appendix of the document, we've been breaking 2022 in between PME and Luxury & Lifestyle. You will see in those numbers for 2022, that Luxury & Lifestyle is EUR 202 million, I believe, of EBITDA. Then it's simple. If you want to believe the EBITDA for Luxury & Lifestyle for '23, just add 55% to 65% growth, which is why we gave it to you that way, that way you can probably easily model both division for '22, '23, and then it's going to be up to you to move forward. On the '23, '27, I'm not going to be spending too much time. Many of you had the time to not only read it, but to make your own assessment on the quality of those numbers. It's just the last line, which is a return to shareholders, many of you through the lunchtime has been asking me how convinced are you that you can do the EUR 3 billion. And I responded. I'm not convinced I am certain that if we do have the environment we believe we are in, that EUR 3 billion will come back to shareholders in the next '23 to '27. It is -- and I'm just saying it now. It's not a question of precaution. All those hypotheses, all those growth factors has been assessed under what we know about the world today because I don't know of any other mechanism we can do on projecting either a better or a more difficult environment. I'm not an economist. What we can tell you is we know where the demand is, we know what the brand love is. We know what we can deliver in terms of performances, and that's what we assessed. If the world gets to be better, we'd like it to have better results. If the world is going to be tougher, then we'll see how to respond to it. And we had slide on conclusion, which was part of usually typical 4 to 5 different lines, which we decided with Jean-Jacques to scrap entirely because at the end -- sorry, that's the return to shareholders, the EUR 3 billion I just referred to you. It is a 50% of free cash flow. Some of you also asked me during lunchtime. It's odd that I guess you becoming very consistent, very coherent, very focused. Maybe I was not. But I think we have been in terms of model extremely disciplined for at least 10 years at any free cash flow, 50% of it should be back in ordinary dividend. We've made some exception but positive exception last year by topping the dividend to go back to [ 105 ] to make sure we can go back to the 2019 level knowing at the time that we were entering a positive environment. So moving forward, we're not changing the rules. The rule is the same, 50% of free cash flow, which under our own business plan is EUR 1.3 billion to EUR 1.6 billion cumulative of '23 to '27. That means that the left over, you're going to have an additional EUR 1.5 billion to EUR 2 billion going back to shareholders. We have a line here, and I don't want to drive too quickly because we're going to have the Q&A session. On the world here opportunistic. I should have changed it. It is not opportunistic. It's probably tactical investment, if any, which is kind of a top-up as opposed to opportunistic, which probably means something more severe, and that's not what we have in our mind. However, I want to make sure that you understand and that we don't surprise negatively the rating agencies. All of those numbers, they must be in line with gaining back investment grade. And again, that's another commitment we've made over the last 10 years to go back to it, and we should not be budging from it. So that's where we are. So the last line is what I said to you, which could have been a 7 lines or 6 lines conclusion. But only 1 line suffice. It's no longer a question of strategy. My belief, job is done. We knew where we want to take this company in terms of geography, in terms of segment, in terms of demand, in terms of brand, in terms of talent. I told you it took us 2 to 3 years more than we expected. The job is done. So it has nothing to do with strategy the next 3 to 5 years. It has to do on can we just deliver on while being built. So that line is good enough and that's probably a good opening for the Q&A session. And I think we're going to be right on time.

So we have -- let's try to make it 1 hour and maybe 1 hour is too many or too long. But I promise you, by 5:30 max we'll be out of this session for you to be back to wherever you need to go back to. So we're going to have -- first, I don't see anything, so -- because of the light. So if you were to actually yell. So I see your hands, good news, I don't even know who you are. So why don't we -- do we have -- madam, I think you need the microphone to go on the fourth -- Maybe you can open actually the light. Oh, you are standing, you already got the microphone now. Okay. And then so be mindful that, I guess, I'm going to try to mix in between you and if you can introduce yourself and what we'll have on the screen because some of those not being physically present in the room will indeed ask questions on the web. So I would try to respond to everybody. Yes, sir.

Okay. I've got the mic, so I start, I guess. So Alex Brignall from Redburn. I'll do 3 because it's traditional. Within the RevPAR growth and in historic releases, you've talked about the faster growth of the higher end parts of the business. So could you talk about the mix component within RevPAR growth? Because likely, it's not all like-for-like RevPAR. So maybe there's a component which is from the mix of your rooms? Secondly, on the financing conditions in the U.S., we spoke a little bit about this at lunch. I guess if you could talk about your expectations of how that will affect outside of the U.S., if there are any ripple effects from the changing financing environment and potentially negative consequences or maybe even positive ones? And then the third one, I'm sure Jean-Jacques you'll enjoy this as much as Pierre-Loup did. There's clearly some conservatism in the EBITDA guidance as it relates to the RevPAR guidance. So I wonder whether maybe you can just extrapolate on that a little bit.

Jean-Jacques, do you want to take 1 and 3, and I'll take 2?

Start with the [ accounts conservatism ]. Normally, at this time of the year, we don't give any guidance. So we do more than what we typically do. And last time that I got that comment was when we provided the first guidance on RevPAR back in January, if you recall. And my comment at that point in time was that I wanted to make sure that I would surprise you positively. So I think you've got your answer. The financing condition, yes, you heard me this morning on development. When I was talking about conversion. I think this is a very good illustration of what we see and the numbers that you see in terms of net unit growth do reflect some stiffening in the financing conditions for any activity linked to development. In the U.S., it's more acute. I mean, the crisis in the U.S. is -- I don't know if you can say in advance, but it's tougher than what we've seen yet in the rest of the world. And so we do take that into our plans. Hence, what you see in the projection for the current year, but also for the upcoming year. We do not assume that this is going to last forever, which is why there is also some kind of recovery after, let's say, 2 years, but God knows. So that's really where we are. I think the -- what we do in terms of those conversion brand is probably is the best thing that you can do because fundamentally, you are limiting any financing needs. And maybe a last comment that maybe doesn't pertain so well to the U.S. and distinguishes ourselves from the investor community that you may have there. We do have -- and this is specifically true in Asia, a lot of individual people investing in the hotels. And so when they do that, they do that with local financing. And hence, the relationship that those people may have with local banks is also different than some of the more institutional investors may have with larger banks. And so the fact that there is an intuitu personae, if you feel a relationship, a deeper relationship also may provide people some facilities that you wouldn't get if you are in a more corporate world that you have in the U.S.

My only add up to JJ's answers is on question number two that you asked. The one thing which I want to stress for each of you, of course, we've been projecting ourselves at '23, '27, which is not an easy exercise. The reason why we are let's say, positive or bullish. It's not because we're not lucid about what's happening in the U.S.. We are and he answered correctly on it's being impacted in those numbers. So one thing that we have in mind, which you may not have with the same precision is the amount of wealth, the amount of appetite, the amount of sophistication, which exist in the non-U.S. environment. And you understood from Gaurav, if he is increasing his pipeline by 50% the last 12 months in the worst ever inflationary interest rate environment is precisely, and he told you 60% Asia. Just be with me, the amount of wealth in Malaysia, Indonesia, Singapore, Middle East Inc. is mind boggling. And those will put the resources instead of what could have come from America in the past. And that's where Accor is the best in terms of attracting those sorts of capital because we've been there for over 50 years. That's why we put those numbers forward.

It's Jarrod Castle from UBS. Also 3. You've spoken a lot about revenues from food and bev, residences, any commentary in terms of your guidance on partnership revenues. Historically, you have given commentary about your ambitions there? Secondly, just coming back to kind of the economic climate if you kind of compare yourselves to 2009, clearly, you're a different group. Can you give any color on kind of the resilience that you think you've built into the model now having gone through COVID and the transformation. I guess, would you perform better, I guess probably the answer is yes, but just kind of give color on the resilience that's been built into the organization. And then just because it's flavor of the month, any commentary on AI and the opportunity there in terms of distribution or customer service and how you're thinking about it?

I'll start with the difficult to answer, do AI.

I thought you're going to do partnership, memberships...

No, no, no, this one is for you. This one we'll ask -- Now AI is the flavor of the month. You're absolutely right. In fact, we were in NYU with Sebastien a couple of weeks ago and everybody was talking about AI. I think -- again, I'll try to make it relatively quick I think AI will definitely help what we do on chatbot, i.e., the way you would book and all the intelligence that you can have with any kind of answers having being to some extent, pre-thought. I think that's one clear and obvious thing that you can do. The other one is anything that you can do around the CRM. I mean Alix was mentioning this morning, that we've done a significant investment in order to better know our customer. So all the intelligence here that you can be gathering through the CRM is aided, will be even more aided by artificial intelligence in terms of determining what should be the behavior of those people and basically data mining. And then the last one, which is a very clear one that everybody is going to chase is revenue management. Basically, revenue management is super critical. We've said it several times today. I mean Alix said it in his presentation, and I had it in mind, and in fact, artificial intelligence helps you basically getting various sources of information to complement the typical analysis that you would do on what should be the behavior. So for example, weather information, information on the economy and much more than what is happening in a given vicinity. And so all of that added helps you by getting deeper in the data and being able to better [indiscernible] to get AI into our system. So it's going to come. What we do there is we're basically embracing technology. What it means is that we're never going to be #1 on that. We can't, and this is not the right strategy, but we'll surely listen and ensure that we keep an advantage versus our competition at using those kind of technologies.

On the membership partnerships, it's -- we -- Alix been showing us the numbers. From the EUR 6 million number I gave you in 2018 as being a minuscule numbers from a partnership membership should be this year above EUR 60 million, between EUR 60 million and EUR 70 million. And that has to do with the partnership she signed with...

This is cash. Because you remember there is IFRS 15. For those of you who've got the pleasure to understand accounting. So this is cash. This is the money that you get. This is not when you recognize revenue. Just so that you don't play it in your model.

Yes.

I can do the accounting cost. It's my last day. So -- on resiliency, by the way, it's a good question. You may recall when we went through the reset.

It's your last. It's your last as CFO just take advantage of it. Just do it. No, no. No, on resiliency and your question, Gerard, is I purposely talked about it this morning. We're going to have some hiccup. Of course, we will. I believe that the resiliency of PME is super robust is being built in into what we've done in the last 20 years, what we project for the next 10 years. You heard focus, strategy, trying to actually be more [ invested in ] niche market. If we have hiccups and we will, I am certain that this gentleman to my right knows exactly how to extract, what we never extracted. So the buffer will be improved performances being able to weather some mild storms. That's totally -- that's my true sentiment. But I did tell you this morning, that when you talk about 15 whatever the thing yes -- 15% to 20% EBITDA growth, 23%, 27% for Luxury & Lifestyle. I told this one, this is a high risk. This is unchartered territories for Accor. This is a much better reward, much greater risk and the buffer is not built in, but I would have never assessed Ennismore being 20% growth over the next 5 years, but I know they done so much better the last 3 years. So which is why we gave you that confidence.

You may also recall, I think it's a complementary answer, but it's an important one. As part of reset, what we've done is we work at reducing the fixed cost base. And so that's the best answer in terms of structurally dealing with changes. I don't have massive costs, which are linked to data center that you basically can't play with. And so that's why we've got all those things that were explained this morning in Alix presentation on the move to cloud, so that you get much more of a transaction approach to cost versus a fixed approach to cost. Fixed approach to cost works when you are asset heavy and you believe the world will only go one way.

We need the microphone to go in the middle, otherwise you're never going to have it. Is that you, Jarrod. Not Jarrod, Jaafar is that you? Yes, I don't know who -- since I can't see anything.

Sabrina Blanc from Societe Generale, I have 3 questions, please. The first one is regarding what has been mentioned in the PME segment in terms of exit by Patrick, but also in the Sofitel and MGallery segment by mentioning some cleaning on the portfolio. So I would like to have more color on that part. The second question is more for Gaurav regarding Ennismore. Could we have an idea of the profitability -- the difference of profitability between the room revenues and what is non-room revenues? And my last question is regarding the cash flow generation. We have cash conversion for the group overall. But could we have more color between PME from one part and Lifestyle & Luxury for the other part?

Probably should be unhappy with the answers.

I do the exits because it's part of the PME and Maud and I have the same approach on that. As I said this morning, you can either do what we've done for a long time, i.e., not be [indiscernible] but then pay the price over time of brands which are not what you want them to be and hence, in fact, losing in the long-term development or decide as a new leadership being there and willing to do the right thing to do and cleansed what needs to be cleansed. So the effect, which is really your question, I mentioned this morning, 0.5 to 1 point of NUG for PME and so that's a significant amount. It's not an insignificant amount because the total NUG used to be to the tune of 5% to which is also why in the guidance for PME and also in the guidance of Maud, you have incorporated those actions. Now will things go exactly per plan? You never really know how your negotiations are going to be, but we believe as a management team that the assumption that you've got in the NUG do reflect, in fact, the project, which is called PUR in the company. PUR is not only for PME, it's for the full group.

And for the last question, which is why I said we spent enormous amount of time the last 20 days on what to give, what not to share. And I think we went beyond what probably we wanted to share, so when it comes to rooms and non-rooms profitability for Ennismore, this is not to be shared with anyone and we won't. And when it comes to the mix and the 55% for the group, how to split it between PME and Luxury Lifestyle, we purposely decided not to share it either.

Richard Clarke from Bernstein. Three questions, if I may. Just firstly, just want to understand the CEO role that you've created above these brands. What exactly does that mean? Does each CEO have its own balance sheet, its own KPIs? How do you control internal competition? And maybe sub to that, why is China being separated. Why is China, not under the brand CEOs, what's the rationale behind that? Secondly, I guess what we've heard from a lot of the U.S. hotel companies is going more for value for money. They've all been launching mid-scale, upper mid-scale brands doubling down in that area. It sounds like you're moving in the opposite direction, you're going to grow faster in Luxury & Lifestyle just want to understand the different -- why you see that differently? Is it the DNA, the geographies of the businesses, why are the opposite there? And then maybe a little bit more preserve. We had the announcement yesterday at the disposal of Risma, hopefully, I've got the name right. We've had the disposal of the headquarters. Are those 2 things baked into the cash return guidance and maybe any sign of timing and scope for further cleaning up of the hotel assets and JV assets, et cetera, you've got within the business.

So on the -- I'll leave the last one for Jean-Jacques. On the first question, when it comes to the P&L and how it works, Ennismore has a true P&L and balance sheet allocation. It is independent company, and this one is something particularly you have external shareholders to the extent of 38%. So they have the proper allocation of service agreements and a full P&L, they have access to treasury pool of our core until cash is pulled. But again, they also have assets being allocated. There is an operating P&L for Sofitel, for Raffles for Fairmont, but there's no legal entity as an owner of that P&L let along any asset and balance sheet allocation. It might be the case one day, but it's not the case today. It is not necessary to reopen and to recreate a lot of legal entities with the costs associated with the auditing and so forth. So that's not the case. And when it comes to the Greater China, Greater China does not have a P&L, so the entire development of Fairmont or Raffles or Ennismore or Sofitel happens to be under the Sofitel, Fairmont, Ennismore. That way there's no confusion when you see the numbers from Maud and others, that includes the expansion in Greater China. However, there's kind of a negative write on both side, i.e., the execution on the ground, the development on the ground, the owners relationship is totally under the tutorship of Gary. He's the one who knows, understand and probably has the best eyes to navigate through Greater China, where others don't have the experience. I've been to China 5 times in the life, and it's too risky for them to make wrong assessment with the wrong owners. So Gary cannot open a Sofitel without Maud blessing it but Maud cannot force Gary to open a Sofitel without Gary blessing it. That's the way we work. And it's many companies have Greater China being different for the reason I just talked to you about, you just have to understand your market and who you're dealing with. And it's been working very fine, which is why Gary has 2 seats. One on the PME Executive Committee. He also has one on the Luxury & Lifestyle Executive Committee. The value for money questions on mid-scale and American, it's a very deep question. And it's a question where we defer. And I just want to be super humble because I've been telling you in true candidness that I guess I was not too happy in February '22 with the stock price where it was. And of course, I have seen the share price performances of our peers over the last 10 years, which is vastly different from what we went through. So they might know better. The one thing which is you have to endorse with me, 80% of the growth of the American peers happens to be mostly in U.S. domestic market, which at the time, 10 years ago, was a 55% consolidated branded market. Today is 83%. They keep grabbing on invading the space because they have the best brand recognition, the best CRS, the best loyalty system, but we are at 85% and I'm guaranteeing you some of the remaining 15%, maybe half of it could be converted, half of it will never be converted because those hotels will never be able to put a brand. So wait until they're going to be forced to continue expansion and net unit growth. That would be the time. They're going to have to go and penetrate other territories, the job is done, and that will be as they started in the Middle East with Marriott that they started elsewhere. And that's where you're going to see that maybe what you referred to is not exactly the same model. So it has a lot to do with geography and nature of the consolidated market.

And Richard, on that one that a large part of the place where they wanted to expand was China. Now the relationship being what it is between the U.S. and China, I think some people are also figuring out what could be plan B kind of solution for expanding because the model works on you expanding your network year after year, as we all know. On Risma and Sequana, the third question. It's totally included into the guidance we provided, obviously, but again, it's no different than what we've been discussing for the last, I would say, 3 years on the asset-light roadmap. And so step by step, we are doing it. Sequana was a big achievement taking into account what we know of the markets, the financial markets turmoil nowadays, and Risma is also a very nice move. And it all concur to simplifying the balance sheet, and this is the same path that we will continue with [indiscernible] that we will continue with [indiscernible].

I think mine is on, so I'm going to go.

The good news. I don't see you, but I recognize your voice.

Okay. Vicki Stern from Barclays. The first one is just coming back to the cash, I think your slide was pretty clear. Just to clarify the EUR 3 billion that you talk about in terms of cash return, that's before any disposal of AccorInvest. And if that's the case, just what would be the intended use of that cash? Secondly, you sort of touched on tactical investments. I couldn't sort of not probe further on that. What could tempt you from an investment standpoint. You've made it pretty clear that that's not the intended use for the bulk of the proceeds. But what could be of interest when we're thinking about possible further investments? And then just coming back to the net unit growth. So the guidance for this year is obviously 2% to 3%. You've walked through a pretty clear presentation on why that future unit growth is going to be quite powerful. But if you could just help us understand the journey from getting from 2% to 3% today to something more like the 3% to 5%, obviously, the medium-term target. And to clarify on that closures point, you said 0.5% to 1%, I think, Jean-Jacques. Is that on top of a normal conversion -- sorry, closure level. So just to understand what the total level of closures we should expect would be.

Just on the NUG because it's an easy answer. The 0.5 to 1 point NUG is versus what the historical performance was. So it is included in the guidance of 2% to 3% and so if you want to make it tough, that was probably a level of 2% of churn in PME. I'm just talking PME here. And so you could add 0.5 to 1 point of additional churn coming from the various actions that we have been discussing on PUR.

So when it comes to, Vicki, on EUR 3 billion, it is absolutely before AccorInvest disposal which is not included in that EUR 3 billion. I don't know when AccorInvest is going to be disposed. I think we shared with you last time in the first quarter release, likely to be in '25, I hope sooner, but it has a lot to do with being able to diminish the amount of debt of AccorInvest. AccorInvest has a debt structured problems because of COVID but has no longer any operational operating difficulties, they're back to 2019 level and probably benefit from the exact same rebound as we've been benefiting through Accor hotel service. So we just have to finish a job in terms of restructuring the debt and the balance sheet. We are doing it. We bought members. We have 30%. So the minute is done then we're going to be able to find liquidity on that AccorInvest stake. And so I'll be able to give you a better answer by the time we have the cash in hand, which is probably 18 months to 24 months from today. But I don't see any need of investing that money. When it comes to opportunistic and I said tactical, I won't give you the names of what could be a likely target. One is because it's not precise enough in my mind; two, because we're not working on any tactical acquisition; three, because if that was the case, and it's not, then this is the last thing we're going to do is to give my competitors any clear sight on what we could be buying. What I could tell you, which we chit-chatted a bit at lunch, is those tactical if they were to exist likely will be to enhance the speed, the return and the growth of Luxury & Lifestyle. That's where they are and that's where we see maybe opportunities of the same extent as we have seen with Hoxton. Did we really foresee buying or partner with Hoxton. The answer is no. He called us. And God knows, there is a lot of small founder-led operators who are a little bit orphan, they're missing scale, they're missing social network, they're missing balance sheet, and they've been maybe missing a partner. That's what I referred to what could be bolt-on tactical. But I cannot be more clear. We are not working nor did we hire any investment banker to investigate any opportunities. Yes. Finally, you should have it back. If somebody could give it to Jamie before he's...

Jamie Rollo from Morgan Stanley. Three questions, please. First, I was a bit surprised that there's not more sort of mix benefit in the forward-looking revenue guidance. I mean, simply adding together the 3% to 4% NUG and the 3% to 5% on RevPAR pretty well gets to the 6% to 10% revenue growth. Is that simply because you got the opposite effect in PME expanding into franchises and in luxury expanding into emerging markets? And then secondly...

Stop there because it's a difficult question. Did you -- you have the answer, J.J. I'm not -- I don't have it, which is why I'm turning to you.

I mean, yes, Jamie, I said it clearly this morning. We're going to go for more franchise, right? So that will have an effect on the level of fees, everything being equal. That is what you will see on the M&F line. The phenomenon that you describe is not true on Lifestyle & Luxury, but it is true, I think, more on PME. On the other hand, when we move to franchise, it is not to the detriment of profitability. So when you -- what you do at EBITDA level is different. You should find back the fact that you do that move in order to be more accretive at EBITDA level. but you won't see that on the line, which is M&A. So that's definitely part of the answer because, as you know, in franchise contracts, you don't have an incentive, notably.

I like it when your questions, we can't hear them. That's a new thing that we should have done for 6 years.

And then actually on the same table, actually, if my math is right, the 6% to 10% revenue growth and the 9% to 12% EBITDA growth implies pretty low cost, low single-digit cost inflation each year. I know you said there's no need for reinvestment. But just want to understand, you're happy with that. And then the final question is really for Sebastien. You mentioned the share price quite a few times today in the presentation. if this strategy doesn't work to get it where it perhaps should be, what other levers do you have at your disposal, such as a full separation of the 2 divisions?

I think we're happy with the numbers, we are giving here for the next 5 years. So I think at this juncture, there are still so many things that may happen in this world that this is a good guidance.

For the question on share price and what should I be expecting, I've been wrong in the last 10 years on share price of Accor. So we do everything we can to make it easy on us in terms of improving performances with a greater, deeper, more focused leadership, probably a simpler model. we make it hopefully clear with you today on being able to assess the risk, the opportunities, the rewards, the valuations, we don't give you anything you ask for, and I apologize for the earlier question on the mix. And then we'll continue to convince the market that the company should be trading at a better multiple than what it is today, but do you know how much it is not a part of what I control. I can only add which we here is -- there -- as the lead independent director, of course, we had a number of discussions on making sure that when we built in a dedicated legal holding entity for Luxury & Lifestyle, which we are doing as we speak, which is part of our restructuring cost, which we discussed with you 3 months ago. It is another 18 months process, by the way, the same 18 months of pain we went on [indiscernible]. [indiscernible] it with a code name for Ennismore which I told you, you need to put together social issues, accounting issues, tax issues, regulatory issues, owners to accept that you transfer management contract from one entity to a newly held entity. We're also doing it to create opportunities to make sure that the Board and the management could make proper decision if needed at the time valuation hasn't been enhanced, that's the maximum I could say to you.

It's Jaafar Mestari from BNP Paribas Exane. Two questions for me. The first one is completely unfair because it's been almost 5 years. But when we last were in this room, I think in 2018, we were listening to a very focused presentation. We had a very moderate Q&A session. And then 3 months down the line, you came up with a big round of OpEx investments, EUR 225 million, if I remember correctly. So let's assume you've told us everything this time. I guess the more important question would be what has changed? What is different this time around in the board dynamics and the shareholder dynamics and your personal ambitions? What makes it that an airline cannot come and tempt you, sponsorship cannot come and tempt to you. big relaunch cannot come and temp you this time? And separately, on the numbers on the guidance, if we ignore '23 and really look at the medium term '24, '25, '26, '27. On the RevPAR, it's 3% to 4% for the group is what you're budgeting. If I pick up all the different elements of self-help in RevPAR, revenue management is several points of upside and then the refurbishments in Europe, in PME are 15% upside for the -- about half of them are not done yet. So if I add all of this together, it's not difficult to get 2% to 3% just on self-help and stuff that's not reliant on macro. Would you broadly agree with that, that you have a few points a year just of self-help?

Jaafar, you -- by the way, nice to hear from you. Since you like history. Okay, let's go back to those 5 years in 2018. At that point in time, the RevPAR we provided was 2% to 4%, if you go back to that presentation that you are referring to. So this time, I'm more aggressive, I'm 3% to 5%. Joke aside, joke aside because it's after joke. You're right. The revenue management should be definitely a definite help into the revenue and the RevPAR. That's most definitely something that should help. And we've played it to some extent into those numbers. After that, there is always in something that we provide, which is a 5-year guidance a little bit of cautiousness and a little bit of intelligence on how we build the numbers. But if we play the revenue management plan right, that should definitely boost that number.

Jaafar, your question is pertinent to the point and needed on the second question, which is what JJ just answered. Jarrod, 10 minutes earlier asked a similar question on what is it that makes you feel you're going to be able to deliver on performances without knowing what the market is going to be and any external economic environment, which happens to be pretty negative or at least opaque. So what you talked about in terms of data content, revenue management, new partnership, what Alix told you in terms of extraordinary performance in the last 12 months because of new tools. Those are the buffers we need to make sure we can overdeliver. So we know they exist. But the last thing we're going to do is being wrong in 18 months from today. So which is why it's being built in, but just leave it to us because we've been making mistakes the last 10 years, but we never underdelivered in terms of what we said. We never had -- never been short of any guidance the last 10 years of the management in place. That being said, there was an enormous mistake last Investor Day to enter into a EUR 225 million Accor Live Limitless loyalty program investment announced in Berlin, I think, 45 days or a couple of months after, we were naive a bit stupid and we believe because it was EBITDA, an answer that I guess he was not in a Capital Market Day, there would be extra EBITDA against an extra cost. We will never repeat that mistake again. On the airline, I'll fold again. naivety, probably part of it. I confirm to you that the 2 loyalty system will be great together. But do we need to buy 14% of an airline to do it? Answer is simply no. Did we really commit to buy 14%? You know the answer is no either, but we lost $1 billion market cap only on the verge of those guys don't know what they're doing. And we never got back that $1 billion. So there's probably 2-ton of multiples on what I call management discredit. So -- and it has been costing us where we are today. So since we're getting older, maybe wiser, I can guarantee you. I told you what we've learned on how to do something better Ennismore/[ global ]. It is exactly the same. Whenever we've done badly, wrongly, believe me, we're never going to do it again.

Leo Carrington from Citi. Could I ask firstly on Food -- nonlodging revenues for your hotels. How -- I noticed this point was made in both the -- for both the new divisions. How do you decide when you're choosing to franchise or manage a hotel, how you can also optimize the nonlodging revenue. And there's a second part to that question, how does Paris Society tie into time those plans? And on a separate topic, in terms of the net unit growth in PME, the growth rate you're looking at is a bit lower than Luxury & Lifestyle. To what extent could that growth be higher were it not for your selectivity with your development resources, do you see this -- the PME segment, perhaps it's a geographical factor as well as being structurally less interesting at this point in time.

So on the NUG, I think one thing that has been a key driver of the NUG for PME over the last years has been China. And as part of the number that we are playing in this Capital Market Day, we've been discounting the numbers in the future versus what they have been in history. So one of the things that could be proving us better is if China was to come back faster and stronger than what we have in the plan and even what we had in history. I think that would be one way, and Gary is here. And there are a series of things that we are doing, master franchises, things like that, which it's a market that we've always privilege. And you heard Sebastien and the fact that we put in place a management structure, which is such that we really keep close to what's happening and ensure that we've got the right relationship, understanding of what's happening in that market to capture it. I think we've done a bit of good there. And so that would be a differential, clearly a differential. And after that, I think Middle East is also a place, Gaurav was mentioning a lot of things happening there. It could be a market which develops faster than what anybody could foresee we've not played that because it is still a work in process. But Middle East has got a dynamic that you don't find in many other places.

On the non-room revenues. And I'm not sure I got your question entirely right. I just want to specify one thing. And when it comes to PME you really do not want and you can't afford a lot of non-lodging revenues, i.e., non-room because you happen to be in select service operating mode. So a minimum amount of personnel to service people occupying a room, which is why you fetched a 70% kind of actually margin from room revenues because you have a select service, which is really the model for a lot of Americans eco midscale. In a normal stage for the last 20 years when it comes to midscale/upper midscale premium, max is 25% to 30% of F&B revenues, but in probably all the cases, no margin. On the F&B revenues because you don't have a high ticket, and there's a cost of operation. You probably have a barely 10% to 12% margin on F&B when you go to upper midscale and premium. If you go to Sofitel, Fairmont than it's logical that the part of the experience has to be non-room which is 35% -- 30% to 40% of the venue is room -- is F&B on which you make money on the beverage on the bar up to 80% money, but you have barely 20% on the restaurant part of it. But it is an income and it's part of what you need and you have personnel associated with it. Then you have the Ennismore saga. Why is it that [ there's ] is at 65% -- or sorry, 55%. It's only because it's being programmed that way. At the time of build and design, he was meant to be occupied for repeat loyal customer base, the personnel has been trained, has been part of the model. No great Sofitel, Fairmont has been programmed for the non-room revenues, except MICE. Where you see the large convention hotel, which exists in America and Fairmont is one of the best when it comes to MICE, you do make significant margin on banqueting because that's a model. You know exactly, but those kitchen have been built in and program for serving 1,000 people. So let's be very, very cautious that I guess it is all about program and what you're basically telling your owners. But the more non-room, the less margin, which is back to your question, the less margin you make, but it is part of your brand content.

Andre Juillard, Deutsche Bank. 3 questions, if I may. First one is about Ennismore. You do not own 100% of these entities. So could you come back on your vision for the future, do you look for buying the remaining part of the share? Or are you happy with the actual structure? Second question about CapEx. Could you give us some more color about the investments you are planning to do, especially on Lifestyle & Luxury which, by essence, need more money and need some more regular CapEx and investment to keep the brand updated. And last one is a more general question about the benchmark. When we look at the top 10 in the world, which are either U.S. or Chinese you are almost the only one European. We can consider InterContinental as a U.S. group regarding its geographical exposure. But what is your analysis on what the others did better? And what you missed or what you need to do better to really accelerate growth, be more profitable and all that kind of things.

On Ennismore, I'm not sure we ever talked about it, but it's probably the right moment. We own 62% of Ennismore, 38% in between 2 partners, Qatar Financial Bank and Sharan's family which is of no surprise to each of you. When you have minority investors popping into a controlled entity, there is part of the shareholders agreement, some liquidity rights. And part of the liquidity rights, what we've accepted some months ago, is to do something we've done in many circumstances with Rixos and then with Paris Society and many, many different acquisitions, Mama Shelter and many others, same formula. Upon the third anniversary of the entry of the partners. We need to go to an assessment of what the market value is of Ennismore it's done by 5 investment banks. It's done on one common management package presentation. And the 5 investment banks should assess a valuation of 100% of Ennismore on the 3 criterias: DCF, multiples in the listed environment and transaction comparables, if any M&A. Those investment banks, since they have the same management price, the same numbers, they may have different assessment on PE and on transactions or on DCF depending on the WACC interest rate and you name it. you delete the highest valuation. You delete the lowest valuation. You take the average of the remaining 3. That is the valuation upon which we either buy the minority interest or if we don't buy them, they can actually buy us. That is a liquidity event we had in all the different transactions we've made with all our different partners. This is a price for a partner to come, not to be kidnapped. And that's something I feel very comfortable with, except we know we have a rendezvous clause, and we'd be happy to meet that rendezvous clause and then I'll tell you by that time, whether Accor should be a purchaser of that 38% or Accor should tag along and sell, whether -- we do have this so many things going to be happening in different partners, but that is the liquidity event that we've been signing and undertaking. When it comes to CapEx, part of the business plan that we put together with Jean-Jacques and I of course, discussed it with Martin, Patrick Laurent, who is Chief Auditing guy and Deputy CFO; Pierre Boisselier, who is the Head Treasurer and Deputy CFO as well. We talked about it, but I want to be super clear on. The new model we've been telling you that the average CapEx for the group for the last 5 years has been EUR 150 million to EUR 200 million. That includes key money and that includes all CapEx related to Accor tech and Digital Factory. Going into a different segmentation, different mix, faster growth, which is Luxury & Lifestyle, that CapEx should be added between EUR 50 million and EUR 100 million. So the EUR 150 million norm is becoming EUR 250 million to EUR 300 million norm. The return is actually very good on the extra EUR 50 million to EUR 100 million. I'll give you an example and we won't give you the destination to preserve confidentiality. When Gaurav talked to you about the conversion and signing deals, there is a deal that I guess we are signing which is EUR 17 million of key money against which, we get EUR 12 million of fees per year for a 20-year management contract. That's a very good investment for such a return. So when you have 80% plus all the deals at Accor are dry, i.e. no key money, but it's 90% for PME and it's 70% for Luxury & Lifestyle. So no question when it comes to developing a Fairmont, Sofitel and some of the Lifestyle brand, you have to pay in because Marriott, Hilton, InterCon are the one pushing for those investments to be made. This is where you have a very good use of the cash. So I just want to warn you when you do the modeling, it is EUR 50 million to EUR 100 million per year. That's going to be gradual, by the way. The EUR 300 million is probably 4 years from today. So we're not going to be spending EUR 300 million in 2024. So it's probably being an increment of EUR 10 million to EUR 20 million additional per year. So that's on your question on the key money.

It doesn't change the 55% -- included in the 55%.

Yes, it doesn't change the 55% conversion. Of course, is being factored in. And when it comes to the last question, Andre, the last question is it's so difficult for us. It's -- and I told you the one thing that the U.S. hospitality market has been the best environment to live through the last 50 years. Why? It's because it has been consolidated for a long time by 5 guys who has been able to push pricing to the determent of real estate owners. They control the system in a good way. I'm not saying that by being anything which is unhealthy. But the price of a management contract the price of a franchise contract in America is 30% to 40% of a greater magnitude than the same management contract in Europe and it's 50% to 70% greater than the same management contract in China, which is also why I've been asking many of you when you talk about net unit growth, dive in, where is the net unit growth coming from? Because the revenue of 100-room hotel in Atlanta, does not have the same performance of the 100 hotel room in Shenzhen. That's okay. We all know about it. But that's part of -- which is why I'm saying, it's interesting to watch since the heydays of America may be behind in terms of capacity to grow, then we may have more competitiveness in outside the U.S., but this is where I believe Accor has the best leadership. But that's the nature of different geographies. By the way, the footprint of Accor in France is 25% to 30% better than the same management contract in Italy because Accor has so much density in France that we can impose because of a distribution and the RPS of our brand in Paris, something we cannot afford to enforce in Milan. You know all this Andre, you know better.

It's Jaina Mistry from Jefferies. Three questions from me. The first one is on net unit growth, and I think it goes back to an earlier question on this. The 2% to 4% group net unit growth for this year is slightly below the 3% to 5% growth for the medium term. The first part of the question is, why is this? Are there technical factors such as portfolio terminations that are lowering the growth rate this year? And then secondly, in the context of a higher cost of debt environment, what does this imply for the phasing of growth over the next 4 years? Is net unit growth expected to be back-end loaded in the medium-term guidance? And then my last question is around margins. In 2022, Luxury & Lifestyle made lower margins than premium, midscale and economy. I guess what's driving this? And is there a path to reach 70% or above EBITDA margins in the medium term? Or is the management contract nature of Luxury & Lifestyle structurally depressing margins in the long term.

On the phasing, in fact, that's the comment I was just making when I answered the question on the difficulty to get financing, which the assumption that we take is that it will be difficult for the next 24 months, 18 to 24 months because of the, I would say, crisis that you've got on rates, inflation, enhanced financing so it's not something that will resolve itself in 1 month or in 2 months. So the phasing is such that '23 is the number that we provided to you, '24 will be better than '23, but marginally. And then you will be at the run rate and a number which is higher in '26, '27, hence the average, that is the one that we provided as a compound growth rate of the 3% to 5% for the group.

It's not back-end loaded. You're going to have that linearly over the different years. When it comes to the margins, it's implicit in the nature of the business model. The highest margin is on franchise and the highest margin is on franchise economic segment because you could have 5 guys looking after 50 franchises. Then you have a good margin on management contract, on select service because you can have one guy looking after 20 managed properties because there is not that much non-room revenues, so the upper you go, you have a diminishing margin because you need to allocate a greater amount of resources at the corporate level or at the sales office level or at the experience level or you have to have greater tools for the experience and the loyalty system. That being said, you accept it because in terms of absolute dollars profit, if you have 50% profit on $4,000 room is better than 75% profit on $1,000 a room. I think I'm saying the evident.

And maybe just an additional point I think you know, but just to in the Service to Owners, if you take that in the competition, which I am not sure because I'm not totally grasped with what you do, do you take the STO into the competition when you do the margin?

No, I was just looking at...

Okay. Because in the STO, you've got Fairmont, which is reimbursed costs to the tune of EUR 1 billion and is 0 margin.

This is [indiscernible] from [ Aerostar ] Capital. I have 2 questions. One is on owner relationships. It seems like you guys have a better give and take with the owners than in the U.S. Besides COVID, put COVID aside is there any precedent where you -- when the owners are losing money, you kind of give up on some fee revenue that you can get just so that kind of on a relationship situation? And then a second question being, you are basically talking about luxury experience, should grow faster than luxury goods, right? So you're making that comparison there. So following that comparison, one thing that I haven't heard is luxury goods creates scarcity when you have you guys building new Luxury & Lifestyle, knowing that's the highest growing segment, Hyatt is also building Luxury & Lifestyle with their ALG acquisition. Where's the scarcity, do you know that supply-demand is going to generate a scarcity situation? Or is it going to be an excess situation when everybody know that this is the higher-growing segment and kind of going there a little bit between you and Hyatt. So those are my 2 questions.

On the owners relationship, it's -- this is one of the topics in which I think we should do and could do better. We have multiple of our owners happens to be in multiple segments of Accor. If you take any sovereign fund, insurance company, they happen to be investing cross continent and cross segments. Many of them have a Pullman. They have a Fairmont. They have a Sofitel. They could have an MGallery. They have a Mercure, but they also have Sofitel. We are reflecting on probably having a better tutorship cross owners. As some of you mentioned this morning on having better sales cluster organization. So that's one thing where without surprising you. Some of our competitors have chief owners, CEOs, somebody really looking after day and night at the owners, it's something to be reflected upon, we do a very good job, but I think we can do better on listening to each of them. It's the -- second thing on COVID, we never forfeited fees. So we've been giving some holiday period through the COVID for people not to pay us at the time the hotel were closed. But all those deferred have been 90% accrued and paid by now, what is by the end of this year. So if somebody doesn't pay the fee, then it should leave the network. That mean it doesn't have the wealth and resource to continue basically being under Accor brands. When it comes to luxury experiences and the 15%, 20%, you are absolutely right that, I guess, luxury goods -- high-end luxury goods have scarcities, which help them getting great pricing because the product is just not available, and it's true for a lot of bags that you and I know about. The one thing which is evident today. We have a higher demand today from the high net worth individuals that we can serve. And I'll give you an anecdote, which is being the case for the last 7 months, for the high-end luxury hotels Accor and my competitors because we've been chit chatting about it at NYU. 50% of an ultra net worth individuals when he calls a hotel for booking for spring, summer, fall, 50% of them. There's only one ask, give me your best suite, they never ask for the price of the suite. So the elasticity is not going to go on to the sky, but I can tell you the level of demand from customers the same who is curious not to have the bag ready when he or she wants to buy it. He's also furious not to have the best suite. So we have been able all of us to price efficiently the rooms by volume and because of the same demand for the same suite. And then they got furious because they don't have the same suite they had the year before. It's even worse. They want the same floor and the same number. So I just want you to believe that what happened in luxury good industry in terms of scarcity happen to be the same because of the lack of mix suite. So 5:15. So unless somebody wants to go, but I think we've been talking quite a bit. So we know what we're doing. We probably know how to do it, and it's a hell of a good story with a hell of a good team. And we're very proud, extremely eager to deliver and happily probably do something of a greater force, greater strength, greater discipline than we ever done before.